Battery manufacturer EnerSys (NYSE:ENS) will be reporting results this Wednesday after market hours. Here’s what to look for.
EnerSys beat analysts’ revenue expectations by 6.9% last quarter, reporting revenues of $951.3 million, up 7.6% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ sales volume estimates and EPS guidance for next quarter exceeding analysts’ expectations.
Is EnerSys a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting EnerSys’s revenue to grow 2.9% year on year to $932 million, slowing from the 5.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.72 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. EnerSys has missed Wall Street’s revenue estimates four times over the last two years.
Looking at EnerSys’s peers in the electrical equipment segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Nextpower delivered year-on-year revenue growth of 33.9%, beating analysts’ expectations by 11.5%, and LSI reported flat revenue, topping estimates by 4.9%. Nextpower traded up 13.3% following the results while LSI was also up 8.6%.
Read our full analysis of Nextpower’s results here and LSI’s results here.
There has been positive sentiment among investors in the electrical equipment segment, with share prices up 7.1% on average over the last month. EnerSys is up 20.8% during the same time and is heading into earnings with an average analyst price target of $174.60 (compared to the current share price of $187.10).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.