The 10-second takeaway
For the quarter ended Jan. 1 (Q3), EnerSys beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased.
Margins dropped across the board.
EnerSys logged revenue of $574.2 million. The eight analysts polled by S&P Capital IQ wanted to see a top line of $563.2 million. GAAP sales were 13% higher than the prior-year quarter's $508.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.80. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.69 per share on the same basis. GAAP EPS of $0.77 for Q3 were 15% higher than the prior-year quarter's $0.67 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.8%, 40 basis points worse than the prior-year quarter. Operating margin was 9.6%, 20 basis points worse than the prior-year quarter. Net margin was 6.4%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $573.6 million. On the bottom line, the average EPS estimate is $0.73.
Next year's average estimate for revenue is $2.25 billion. The average EPS estimate is $2.67.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 380 members rating the stock outperform and 13 members rating it underperform. Among 96 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 94 give EnerSys a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EnerSys is buy, with an average price target of $32.91.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.