The 10-second takeaway
For the quarter ended March 31 (Q4), EnerSys met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Margins expanded across the board.
EnerSys reported revenue of $592.8 million. The six analysts polled by S&P Capital IQ predicted revenue of $592.0 million on the same basis. GAAP reported sales were 8.2% higher than the prior-year quarter's $548.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.98. The seven earnings estimates compiled by S&P Capital IQ averaged $0.88 per share. GAAP EPS of $0.95 for Q4 were 58% higher than the prior-year quarter's $0.60 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 24.5%, 180 basis points better than the prior-year quarter. Operating margin was 11.5%, 140 basis points better than the prior-year quarter. Net margin was 7.7%, 220 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $593.5 million. On the bottom line, the average EPS estimate is $0.86.
Next year's average estimate for revenue is $2.44 billion. The average EPS estimate is $3.33.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 385 members out of 398 rating the stock outperform, and 13 members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 74 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 $39.44.
Over the decades, small-cap stocks, like EnerSys have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add EnerSys to My Watchlist.
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.