EnerSys misses Q3 revenue estimates

Overview

• Stored energy solutions firm's fiscal Q3 revenue rose 1%, missing analyst expectations

• Adjusted EPS for fiscal Q3 beat analyst expectations

• Company returned $94 mln to shareholders through buybacks and dividends in Q3

Outlook

• EnerSys expects Q4 net sales between $960 mln and $1,000 mln

• Company anticipates Q4 adjusted diluted EPS of $2.95 to $3.05

• EnerSys forecasts full-year capital expenditures of ~$80 mln

Result Drivers

• PRODUCT MIX AND PRICING - EnerSys attributed margin expansion to favorable product mix and pricing discipline

• ENERGIZE INITIATIVES - EnerSys cited operational efficiencies and cost savings from its EnerGize strategic framework

• MOTIVE POWER SOFTNESS - Market softness in Motive Power segment led to lower volumes

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electrical components & equipment peer group is "buy"

• Wall Street's median 12-month price target for EnerSys is $180.50, about 5% below its February 3 closing price of $189.93

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBw19dCb1a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.