EnerSys Q2 sales fall short on foreign currency impact
Overview
US stored energy provider's Q2 sales declined slightly and missed analyst expectations
Adjusted EPS for Q2 rose 22% and beat analyst expectations
Company returned $140 mln to shareholders through share repurchases and dividends
Outlook
EnerSys expects Q3 net sales of $935 mln to $975 mln
Company sees Q3 adjusted diluted EPS of $3.05 to $3.15, inclusive of IRC 45X Advanced Manufacturing Production Credits
EnerSys expects FY27 capital expenditures of about $70 mln
Result Drivers
SEGMENT PERFORMANCE - Strong year-on-year sales growth in Precision Power Solutions and Network and Infrastructure Solutions segments, driven by defense and data center demand, helped offset ongoing softness in material handling within Industrial Mobility Solutions
FOREIGN CURRENCY IMPACT - Revenue decline and miss versus guidance attributed to foreign currency translation
NEW PRODUCT CONTRIBUTION - Initial sales from new lithium solutions and product launches contributed to results
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $949.90 mln | $966.60 mln (4 Analysts) |
Q2 Adjusted EPS | Beat | $3.22 | $3.18 (4 Analysts) |
Q2 EPS | $2.42 | ||
Q2 Net Income | $89.60 mln | ||
Q2 Operating Earnings | $115.50 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "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 $265.00, about 75.1% above its November 10 closing price of $151.33
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 15 three months ago
Reuters Recommended Reads
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)