EnerSys Announces First Quarter Fiscal 2025 Financial Results
Intellectia.AI2024-08-08
EnerSys Announces First Quarter Fiscal 2025 Financial Results
EnerSys (NYSE: ENS), the global leader in stored energy solutions for industrial applications, reported its financial results for the first quarter of fiscal 2025, which ended on June 30, 2024.
Key Financial Metrics
| Metric | Q1 FY2025 | Q1 FY2024 | QoQ Change | YoY Change | Consensus Estimates |
|---|---|---|---|---|---|
| Total Revenue | $853M | $908.6M | -6.1% | -6% | $876.4M |
| Earnings Per Share (EPS) | $1.71 | $1.60 | +6.9% | +7% | $1.95 |
| Adjusted EPS | $1.98 | $1.89 | +4.8% | +5% | - |
Interpretation: EnerSys reported a slight miss in revenue compared to consensus estimates and a modest decline year-over-year. However, the company managed to deliver adjusted EPS above the midpoint of their guidance and above the consensus, thanks to effective cost reductions and operational efficiencies.
Segment Performance
| Segment | Q1 FY2025 Revenue | Previous Guidance | Interpretation |
|---|---|---|---|
| Energy Systems | Not specified | Not provided | Weak volume and mix due to Communications segment pressure, but encouraging order trends. |
| Motive Power | Not specified | On plan | Increased volumes and margins due to strong customer demand in logistics and warehousing. |
| Specialty | Not specified | - | Expected improvement in the second half of the year. |
Interpretation: Despite overall revenue decline, the Motive Power segment performed well, supported by consistent customer demand. Energy Systems faced challenges but showed promising backlog trends, indicating potential recovery.
Dividend Announcement
EnerSys increased its quarterly dividend by 7% to $0.24 per share, payable on September 30, 2024, to holders of record as of September 16, 2024. This represents a positive signal of the company's financial health and commitment to returning value to shareholders.
Forward Guidance
For the second quarter of fiscal 2025 and the full year, EnerSys provided the following outlook:
- Q2 FY2025:
- Net sales: $880M to $920M
-
Adjusted diluted EPS: $2.05 to $2.15
-
Full Year FY2025:
- Net sales: $3,735M to $3,885M (up from prior guidance of $3,675M to $3,825M)
- Adjusted diluted EPS: $8.80 to $9.20 (up from prior guidance of $8.55 to $8.95)
Stock Price Movement
Post-earnings release, EnerSys’ stock experienced a marginal decline of approximately 0.83%.
Comments from Company’s Officers
David M. Shaffer, President and CEO, noted, "We delivered EPS at the mid-point and revenue slightly below the low end of our guidance range. Amid topline temporary market pressures, we are advancing on our strategic initiatives and remain optimistic for this fiscal year's results. We see promising demand indicators and positive momentum across our business."
Operational Highlights
- Achieved a gross margin of 28.0%, an increase of 160 basis points from the prior year.
- Closed the acquisition of Bren-Tronics in July 2024, expanding the company's lithium product offerings and presence in the defense market.
- Advanced the lithium gigafactory planning with expected results from the Department of Energy funding allocation in the coming weeks.
Overall, EnerSys demonstrated resilience amid challenging market conditions and continues to show potential for future growth through strategic initiatives and acquisitions.
The report is well-organized and contains useful information for investors. No changes are required.
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