The 10-second takeaway
For the quarter ended March 31 (Q4), EnerSys met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share contracted significantly. GAAP earnings per share shrank significantly.
Margins dropped across the board.
EnerSys recorded revenue of $572.2 million. The seven analysts polled by S&P Capital IQ predicted revenue of $579.1 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 $0.80. The eight earnings estimates compiled by S&P Capital IQ forecast $0.79 per share. Non-GAAP EPS of $0.80 for Q4 were 18% lower than the prior-year quarter's $0.98 per share. GAAP EPS of $0.77 for Q4 were 19% lower than the prior-year quarter's $0.95 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 24.3%, 20 basis points worse than the prior-year quarter. Operating margin was 10.3%, 120 basis points worse than the prior-year quarter. Net margin was 6.6%, 110 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
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 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give EnerSys a green thumbs-up, and three give it a red thumbs-down.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.