Core Insights - EnerSys reported Q1 FY2026 earnings with revenue of $893.0 million, a 4.7% increase year-over-year, but missed analyst estimates of $939.8 million [1][2] - Adjusted diluted EPS (non-GAAP) rose to $2.08, reflecting a 5.1% increase from $1.98 in Q1 FY2025, but fell short of the expected $2.59 [2] - The company suspended full-year quantitative guidance for FY2026 due to external uncertainties and operational challenges [1] Financial Performance - Revenue increased by 4.7% year-over-year, driven by acquisitions, pricing improvements, and favorable currency movements [5] - Adjusted operating earnings (non-GAAP) grew by 8.1%, while EBITDA (non-GAAP) decreased by 8.8% to $103.9 million compared to $113.9 million in Q1 FY2025 [2][7] - Free cash flow (non-GAAP) was negative at $(32.1) million, attributed to seasonal working capital needs and higher inventories [7] Segment Analysis - The Energy Systems segment saw an 8.4% sales increase, with adjusted operating margins improving to 7.0% from 5.3% in Q1 FY2025 [6] - Motive Power segment sales fell by 4.7%, with adjusted operating margins decreasing from 15.3% to 13.4% due to weakened demand [6] - Specialty segment sales jumped by 18.1%, significantly boosted by the acquisition of Bren-Tronics [6] Strategic Focus - EnerSys emphasizes innovation in advanced battery technologies, including TPPL and lithium-ion batteries, while managing lead costs [4][11] - The company is implementing a new strategic framework, "EnerGize," targeting approximately $80 million in annualized cost savings through workforce reduction and reorganization [10] - Regulatory compliance and sustainability remain priorities as the company serves a diverse global customer base [4] Shareholder Returns - The quarterly dividend was raised by 9% to $0.2625 per share, reflecting a commitment to shareholder capital returns [9][14] - The company completed $150 million in share repurchases, a significant increase from $11.6 million in Q1 FY2025 [9] Future Outlook - Management forecasts Q2 FY2026 net sales between $870 million and $910 million, with adjusted diluted EPS between $2.33 and $2.43 [12] - The company did not provide full-year guidance for FY2026 due to uncertainties around tariffs and customer order behavior [12] - Key factors to watch include organic growth in core business areas, realization of cost savings, and the impact of IRC 45X tax credits on profitability [13]

Core Viewpoint - Xerox Holdings Corporation reported a quarterly loss of $0.06 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.05, marking an earnings surprise of -20% [1] - The company has consistently missed consensus EPS estimates over the last four quarters [2] Financial Performance - Xerox posted revenues of $1.46 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 3.19%, compared to $1.5 billion in revenues a year ago [2] - The company has only surpassed consensus revenue estimates once in the last four quarters [2] Stock Performance - Xerox shares have declined approximately 47.7% since the beginning of the year, in contrast to the S&P 500's decline of -5.3% [3] - The current Zacks Rank for Xerox is 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $1.58 billion, and for the current fiscal year, it is $0.72 on revenues of $6.25 billion [7] - The trend for estimate revisions ahead of the earnings release has been unfavorable [6] Industry Context - The Office Supplies industry, to which Xerox belongs, is currently ranked in the bottom 13% of over 250 Zacks industries, suggesting a challenging environment [8]