Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of industrial battery maker EnerSys
So what: The stock has been beaten up on concerns over waning industrial demand, but EnersSys' third-quarter results -- both revenue and net income came in ahead of expectations -- suggest that things aren't as bad as analysts had feared. In fact, lower commodity costs, higher volumes, and higher prices are all working handsomely in the company's favor.
Now what: Looking ahead, management now sees third-quarter EPS of $0.67-$0.71, which is well ahead of Wall Street's forecast of $0.61 per share. "Our incoming order rates remain strong and we continue to believe that the second half of our fiscal year will be stronger than our first half," said Chairman and CEO John Craig. Buying into a big rally isn't exactly ideal, but with a forward P/E around 10, EnerSys likely has plenty of upside left.
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