EnerSys (NYSE: ENS ) is an interesting under-the-radar stock with robust fundamentals. The company is amid favorable secular trends as the demand for energy storage is expanding with the global transition to cleaner energy. ENSWith a decade at a Big 4 audit firm specializing in the banking, mining, and energy sectors, I bring a strong foundation in finance and strategy. Currently, I serve as the Head of Finance for a leading owner and operator of retail real estate, where I oversee complex financial operati ...

EnerSys (ENS) has been witnessing strength in its Motive power segment, driven by increased sales of maintenance-free thin plate pure lead and lithium products. The segment’s revenues increased 3% year over year in the second quarter of fiscal 2025 (ended September 2024). Management expects the Motive Power segment will benefit from strength in the automation and electrification markets. Solid momentum in the aerospace and defense end markets is aiding the Specialty segment. The segment’s revenues increased ...

Distribution Announcement - E Split Corp. has announced a distribution for Class A shareholders of $0.13 per equity share, payable on January 15, 2025, with a record date of December 31, 2024 [2] - The preferred shareholders will receive a distribution of $0.175 per preferred share, also payable on January 15, 2025, with the same record date of December 31, 2024 [3] Trading Information - Both equity and preferred shares of E Split Corp. are traded on the Toronto Stock Exchange under the symbols ENS and ENS.PR.A respectively [2]

Enersys (ENS) , on Dec. 17, updated its previously provided third-quarter fiscal 2025 outlook, considering the impact of incremental benefits related to the Advanced Manufacturing Production Credit - Section 45X of the Internal Revenue Code. The company expects that the U.S. Treasury Department’s final regulations for certain direct material input costs will result in higher benefits associated with the tax credits.The company currently anticipates annual tax credits, which are noted as a decrease in the co ...

Enersys (ENS) reported second-quarter fiscal 2025 (ended Sept. 30, 2024) adjusted earnings of $2.12 per share, which surpassed the Zacks Consensus Estimate of $2.07. The bottom line increased 15% year over year.Enersys’ net sales of $883.7 million missed the consensus estimate of $887 million. The top line declined 1.9% year over year due to headwinds in communications and transportation markets.  Organic sales decreased 3%. While acquisitions boosted sales by 2%, price/mix had an adverse impact of 1%.Stay ...

For the quarter ended September 2024, EnerSys (ENS) reported revenue of $883.7 million, down 1.9% over the same period last year. EPS came in at $2.12, compared to $1.84 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $887.31 million, representing a surprise of -0.41%. The company delivered an EPS surprise of +2.42%, with the consensus EPS estimate being $2.07.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

EnerSys (ENS) came out with quarterly earnings of $2.12 per share, beating the Zacks Consensus Estimate of $2.07 per share. This compares to earnings of $1.84 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.42%. A quarter ago, it was expected that this maker of industrial batteries would post earnings of $1.97 per share when it actually produced earnings of $1.98, delivering a surprise of 0.51%.Over the last four quarters, t ...

Acquisition and Investments - The company completed the acquisition of Bren-Tronics Defense LLC for $205.3 million in cash, enhancing its Specialty line of business[149]. - Investing activities used cash of $282.5 million in the six months of fiscal 2025, primarily for the Bren-Tronics acquisition of $205.3 million[210]. Financial Performance - In Q2 fiscal 2025, net sales decreased by $17.3 million or 1.9% compared to Q2 fiscal 2024, driven by a 3% decrease in organic volume and a 1% decrease in pricing, partially offset by a 2% increase from acquisitions[165]. - For the first six months of fiscal 2025, net sales decreased by $73.0 million or 4.0% compared to the same period in fiscal 2024, attributed to a 3% decrease in organic volume and a 1% decrease in pricing[166]. - The Energy Systems segment saw a net sales decline of $40.4 million or 9.6% in Q2 fiscal 2025, primarily due to an 8% decrease in organic volume and a 2% decrease in pricing[167]. - The Motive Power segment experienced a net sales increase of $11.5 million or 3.2% in Q2 fiscal 2025, mainly due to a 3% increase in organic volume[168]. - The Specialty segment's net sales increased by $11.6 million or 9.3% in Q2 fiscal 2025, driven by a 12% increase from acquisitions[169]. - Gross profit increased by $12.5 million or 5.2% in Q2 fiscal 2025, with gross profit margin improving by 190 basis points compared to Q2 fiscal 2024[171]. - Operating earnings increased by $10.8 million or 12.2% in the second quarter of fiscal 2025 compared to the same period in fiscal 2024[191]. - Earnings before income taxes increased by $10.8 million or 14.7% in the second quarter of fiscal 2025 compared to the same quarter in fiscal 2024[201]. Operating Expenses and Charges - Operating expenses increased to $291.7 million in the first six months of fiscal 2025, representing 16.8% of net sales, up from 15.9% in the same period of fiscal 2024[172]. - The company incurred restructuring charges of $0.9 million in Q2 fiscal 2025 related to the Energy Systems segment[174]. - The company plans to cease production of residential renewable energy products, estimating total charges of $24.5 million, primarily non-cash[175]. - The company committed to closing its Spokane facility, estimating total charges of approximately $3.6 million related to employee severance and non-cash charges[176]. - The Company estimates total charges of $13.5 million for the closure of its Sylmar facility, with cash charges of $9.6 million primarily for severance and non-cash charges of $3.9 million related to fixed assets and inventory[178]. - The Ooltewah facility closure is expected to incur total charges of approximately $18.5 million, with cash charges of $9.2 million and non-cash charges of $9.3 million[182]. - The majority of charges related to the Hagen facility closure, estimated at $60.0 million, have been recorded as of January 1, 2023[185]. - The Company recorded cash charges of $1.1 million for site cleanup and $0.2 million for accelerated depreciation during the six months of fiscal 2025[188]. - The Company recorded cash charges of $4.4 million for site cleanup and decommissioning equipment during fiscal 2024[183]. Cash Flow and Liquidity - The company has $408 million in available cash and cash equivalents, along with undrawn committed credit lines of approximately $445 million as of September 29, 2024[158]. - Operating activities provided cash of $44.0 million in the six months of fiscal 2025, a significant decrease from $185.7 million in the same period of fiscal 2024[208]. - Total cash and cash equivalents increased by $74.6 million to $407.9 million in the six months of fiscal 2025[214]. - Financing activities provided cash of $305.3 million in the six months of fiscal 2025, including borrowing $476.6 million under the Second Amended Revolver[212]. Market Conditions and Economic Factors - Global economic conditions are mixed, with elevated interest rates and geopolitical tensions affecting operations in North America, China, and EMEA[150]. - The ongoing Israel-Hamas conflict has disrupted some shipments, leading to potential increases in ocean freight costs and transit times[151]. - Approximately 25% of the company's revenue is now subject to agreements that adjust pricing to a market-based index for lead, with customer pricing changes generally lagging by six to nine months[154]. - The company experienced some price increases in raw materials like copper since the beginning of fiscal year 2025, despite moderation in other materials[154]. - The market demand in the Motive Power segment remains healthy, although there was a decrease in demand in the Class 8 truck market impacting the Specialty segment[151]. Interest and Taxation - Interest expense for the second quarter of fiscal 2025 was $12.5 million, a $0.3 million increase from $12.2 million in the same quarter of fiscal 2024[195]. - Interest expense for the six months of fiscal 2025 was $23.5 million, a decrease of $3.9 million from $27.4 million in the same period of fiscal 2024[196]. - The effective income tax rate for the second quarter of fiscal 2025 was 2.3%, down from 11.2% in the same quarter of fiscal 2024, primarily due to a discrete tax benefit[205]. Foreign Operations and Currency Exposure - Foreign income as a percentage of worldwide income is estimated to be 53% for fiscal 2025, down from 56% for fiscal 2024[206]. - Approximately 40% of sales and related expenses are transacted in foreign currencies, impacting profit margins and competitive position[231]. - The company hedges approximately 5% - 10% of the nominal amount of known annual foreign exchange transactional exposures[233].

Core Insights - EnerSys (ENS) is expected to report quarterly earnings of $2.07 per share, a 12.5% increase year-over-year, while revenues are forecasted at $887.31 million, reflecting a 1.5% decrease compared to the previous year [1] Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 0.3%, indicating a reassessment by analysts [2] - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3] Key Metrics - Analysts project 'Net Sales- Specialty' at $136.79 million, a 10.9% increase year-over-year [5] - 'Net Sales- Motive Power' is expected to reach $369.32 million, indicating a 4% year-over-year increase [5] - The consensus estimate for 'Net Sales- Energy Systems' is $383.28 million, suggesting a 9.3% decrease year-over-year [5] Operating Earnings - The average prediction for 'Operating Earnings- Energy Systems' is $22.92 million, up from $16.80 million in the same quarter last year [6] - 'Operating Earnings- Motive Power' is forecasted at $54.39 million, compared to $49.60 million a year ago [6] - Analysts expect 'Operating Earnings- Specialty' to be $8.44 million, significantly higher than the year-ago figure of $3.30 million [7] Stock Performance - Over the past month, EnerSys shares have declined by 3.5%, while the Zacks S&P 500 composite has decreased by 0.5% [7] - EnerSys holds a Zacks Rank 4 (Sell), suggesting it may underperform the overall market in the near term [7]

The market expects EnerSys (ENS) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on November 6, 2024, might help the stock move higher if these key numbers are ...