The 10-second takeaway
For the quarter ended Dec. 30 (Q3), EnerSys beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share grew.
Margins increased across the board.
EnerSys reported revenue of $557.3 million. The seven analysts polled by S&P Capital IQ expected a top line of $545.1 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.88. The eight earnings estimates compiled by S&P Capital IQ averaged $0.79 per share. GAAP EPS of $0.80 for Q3 were 3.9% higher than the prior-year quarter's $0.77 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 25.8%, 300 basis points better than the prior-year quarter. Operating margin was 11.4%, 180 basis points better than the prior-year quarter. Net margin was 7.0%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $578.9 million. On the bottom line, the average EPS estimate is $0.83.
Next year's average estimate for revenue is $2.27 billion. The average EPS estimate is $3.49.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 389 members out of 403 rating the stock outperform, and 14 members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 77 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 outperform, with an average price target of $42.67.
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