EnerSys Reports Record Q4 Earnings and Optimistic Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: seekingalpha
- Strong Financial Performance: EnerSys reported Q4 net sales of $988 million, a 1% increase year-over-year, with adjusted EPS reaching a record $3.19, reflecting significant operational efficiency and cost control, which is expected to bolster investor confidence moving forward.
- Strategic Adjustments and Cost Savings: The company announced the closure of its Tijuana facility, shifting production to Springfield, Missouri, which is expected to generate approximately $20 million in incremental benefits by fiscal 2028, while also anticipating around $19 million in savings from the Monterrey closure in fiscal 2027, optimizing its manufacturing footprint.
- Product Roadmap Progress: Management indicated that two new products advanced into customer commissioning this quarter, suggesting that future earnings growth will increasingly rely on top-line growth rather than margin expansion, indicating a strategic shift towards customer-driven initiatives in a competitive market.
- Optimistic Outlook: EnerSys guided Q1 fiscal 2027 net sales in the range of $915 million to $955 million, with adjusted EPS of $2.80 to $2.90, reflecting cautious optimism about market recovery, particularly in the Motive Power sector, as order momentum is expected to improve.
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Analyst Views on ENS
Wall Street analysts forecast ENS stock price to fall
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 214.560
Low
120.00
Averages
147.50
High
175.00
Current: 214.560
Low
120.00
Averages
147.50
High
175.00
About ENS
EnerSys specializes in stored energy solutions for industrial applications. The Company designs, manufactures and distributes energy systems solutions and motive power batteries, specialty batteries, battery chargers, power equipment, battery accessories and outdoor equipment enclosure solutions to customers worldwide. The Company’s segment includes Energy Systems, Motive Power, Specialty and New Ventures. Energy Systems, which combine power conversion, power distribution, energy storage, and enclosures. Motive power batteries and chargers are utilized in electric forklift trucks and other industrial electric powered vehicles. Specialty batteries are used in aerospace and defense applications, portable power solutions for soldiers in the field, large over-the-road trucks, and other applications. New Ventures provides energy storage and management systems for various applications, including demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
EnerSys Reports Record Q4 Earnings and Optimistic Guidance
- Strong Financial Performance: EnerSys reported Q4 net sales of $988 million, a 1% increase year-over-year, with adjusted EPS reaching a record $3.19, reflecting significant operational efficiency and cost control, which is expected to bolster investor confidence moving forward.
- Strategic Adjustments and Cost Savings: The company announced the closure of its Tijuana facility, shifting production to Springfield, Missouri, which is expected to generate approximately $20 million in incremental benefits by fiscal 2028, while also anticipating around $19 million in savings from the Monterrey closure in fiscal 2027, optimizing its manufacturing footprint.
- Product Roadmap Progress: Management indicated that two new products advanced into customer commissioning this quarter, suggesting that future earnings growth will increasingly rely on top-line growth rather than margin expansion, indicating a strategic shift towards customer-driven initiatives in a competitive market.
- Optimistic Outlook: EnerSys guided Q1 fiscal 2027 net sales in the range of $915 million to $955 million, with adjusted EPS of $2.80 to $2.90, reflecting cautious optimism about market recovery, particularly in the Motive Power sector, as order momentum is expected to improve.
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- Mixed Economic Data: Initial US weekly unemployment claims fell by 3,000 to 209,000, close to the expected 210,000, while the May Philadelphia Fed business outlook unexpectedly dropped by 27.1 to -0.4, reflecting uncertainty in economic recovery that could impact investor confidence.
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EnerSys (ENS) Q4 2026 Earnings Transcript
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EnerSys Reports Record Q4 Earnings and Optimistic Guidance
- Strong Financial Performance: EnerSys reported Q4 net sales of $988 million, a 1% increase year-over-year, with adjusted EPS reaching a record $3.19, reflecting significant operational efficiency and cost control, which is expected to bolster investor confidence moving forward.
- Strategic Adjustments and Cost Savings: The company announced the closure of its Tijuana facility, shifting production to Springfield, Missouri, which is expected to generate approximately $20 million in incremental benefits by fiscal 2028, while also anticipating around $19 million in savings from the Monterrey closure in fiscal 2027, optimizing its manufacturing footprint.
- Product Roadmap Progress: Management indicated that two new products advanced into customer commissioning this quarter, suggesting that future earnings growth will increasingly rely on top-line growth rather than margin expansion, indicating a strategic shift towards customer-driven initiatives in a competitive market.
- Optimistic Outlook: EnerSys guided Q1 fiscal 2027 net sales in the range of $915 million to $955 million, with adjusted EPS of $2.80 to $2.90, reflecting cautious optimism about market recovery, particularly in the Motive Power sector, as order momentum is expected to improve.
See More
US Stocks Edge Up as Economic Data Shows Stability
- Economic Stability: US weekly initial unemployment claims fell by 3,000 to 209,000, close to the expected 210,000, indicating stability in the labor market and boosting investor confidence in economic recovery.
- Manufacturing Expansion: The May S&P manufacturing PMI unexpectedly rose by 0.8 to 55.3, surpassing expectations of 53.8, marking the strongest pace of expansion in four years, which could drive investment and growth in related sectors.
- Oil Price Volatility: WTI crude oil prices retreated after an initial 4% gain, influenced by market reactions to the situation in Iran, highlighting the uncertainty in the energy market that may impact the overall economy.
- Corporate Earnings Performance: So far, 83% of the 466 S&P 500 companies have beaten earnings estimates, with Q1 earnings projected to climb 12% year-over-year, providing support for the stock market despite a slowdown in the tech sector.
See More
US Stock Market Pressured by Rising Oil Prices Amid Iran Tensions
- Oil Price Surge Impacts Market: The S&P 500 index fell 0.35%, the Dow Jones Industrial Average dropped 0.11%, and the Nasdaq 100 index decreased 0.51% as crude oil prices rose over 2% due to tensions between the US and Iran, indicating market concerns over potential energy supply disruptions.
- Mixed Economic Data: Initial US weekly unemployment claims fell by 3,000 to 209,000, close to expectations, while the May Philadelphia Fed business outlook survey unexpectedly dropped to -0.4, reflecting uncertainty in economic recovery that could affect investor confidence.
- Weak Performance in Tech Stocks: Nvidia's earnings beat expectations but its stock fell over 1% amid rising competition, and Intuit plummeted more than 19% due to revenue falling short of forecasts, highlighting challenges within the tech sector.
- International Market Volatility: Overseas markets showed mixed results, with the Euro Stoxx 50 down 0.02%, China's Shanghai Composite falling 2.04%, while Japan's Nikkei index rose 3.14%, reflecting global economic uncertainty and divergent investor sentiment.
See More
US Stock Indices Decline as Oil Prices Surge
- Oil Price Surge Affects Markets: Crude oil prices jumped over 3% due to doubts about a US-Iran peace deal, leading the S&P 500 to decline by 0.44%, the Dow Jones by 0.47%, and the Nasdaq 100 by 0.49%, indicating market sensitivity to geopolitical risks.
- Mixed Economic Data: Initial US weekly unemployment claims fell by 3,000 to 209,000, close to the expected 210,000, while the May Philadelphia Fed business outlook unexpectedly dropped by 27.1 to -0.4, reflecting uncertainty in economic recovery that could impact investor confidence.
- Divergent Tech Stock Performance: Nvidia's earnings report exceeded expectations, yet its stock fell by 0.60% amid rising competition, highlighting the challenges tech companies face in sustaining growth in a highly competitive environment.
- International Market Volatility: Overseas stock markets showed mixed results, with the Euro Stoxx 50 down 0.52% and Japan's Nikkei up 3.14%, reflecting varying responses to economic conditions across different regions, which may influence investors' asset allocation strategies.
See More
EnerSys (ENS) Q4 2026 Earnings Transcript
See More
Nvidia Reports Strong Earnings but Market Reaction is Tepid
- Nvidia Market Performance: Despite Nvidia (NVDA) reporting strong quarterly results, CEO Jensen Huang stated the company has 'largely conceded' the Chinese market, leading to little change in pre-market trading, reflecting market caution regarding future growth prospects.
- AI Growth Potential: Huang highlighted that the Vera CPU could be a major growth driver, potentially unlocking a $200 billion revenue opportunity, although analysts believe Nvidia's leadership in the AI sector remains unmatched.
- Bloom Energy Partnership: Bloom Energy (BE) has partnered with Nebius Group to provide fuel cell technology for its AI infrastructure build-out, with a contract worth up to $2.6 billion, indicating strong demand for clean energy solutions.
- Market Dynamics: e.l.f Beauty (ELF) surged over 10% in pre-market trading due to a 75% year-over-year increase in international sales, while Intuit (INTU) fell over 13% on slower revenue growth and workforce reductions, showcasing varied market reactions to different companies.
See More
