NYSE$ENS

EnerSys · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

EnerSys reported record gross margin and EPS, driven by strong operating performance and benefits from the Inflation Reduction Act.

EnerSys reported a 1% increase in net sales to $909 million for Q1 2024. The company achieved a record gross margin of 26.4%, including benefits from Inflation Reduction Act tax credits, and a record EPS of $1.60. They reduced net leverage to 1.5X EBITDA with operating cash flow of $75 million.

  • Net sales increased by 1% to $909 million due to normalized customer inventory levels.
  • Record gross margin of 26.4%, including a $19 million benefit from Inflation Reduction Act tax credits.
  • Operating earnings increased by 78% to $89 million, and adjusted operating earnings increased by 65% to $107.2 million.
  • Record diluted EPS of $1.60, a 113% increase, and record adjusted diluted EPS of $1.89, a 64% increase.

Headline financials

Total Revenue

$909M

Previous: $899M+1.1%
EPS (adj)

$1.89

Previous: $1.15+64.3%
Change in Sales due to Organic Volume

-8.0%

Previous: 7.0%-214.3%
Change in Sales due to Pricing

9.0%

Previous: 8.0%+12.5%
Capital Expenditures

-$16.1M

Previous: -$23M+30.1%
Free Cash Flow

$50.7M

Previous: $7.96M+536.7%
Net Income

$66.8M

Previous: $31M+115.6%
Operating Income

$89.4M

Previous: $50.1M+78.4%
Gross Profit

$240M

Previous: $186M+29.5%
Cash & Equivalents

$258M

Previous: $383M-32.6%
Total Assets

$3.48B

Previous: $3.72B-6.5%
Stock-Based Comp

$7.93M

Previous: $5.33M+48.8%

Revenue & EPS history

EnerSys · Revenue · Quarterly

$909M

Q1 2024+1.1%vs Q1 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

EnerSys · $909M total across 3 segments · Q1 2024

  • Energy Systems
    $425M+3.9%
  • Motive Power
    $351M-4.6%
  • Specialty
    $133M+8.7%

Forward guidance

EnerSys expects adjusted diluted earnings per share in the range of $1.77 to $1.87 for Q2 2024, including $0.42 to $0.52 from IRC 45X tax benefits. Gross margin is expected to be in the range of 25.0% to 27.0%, including 150bps to 250bps from IRA credits. Capital expenditures for fiscal year 2024 are expected to be approximately $120 million.

Tailwinds

  • Adjusted diluted earnings per share in the range of $1.77 to $1.87, inclusive of $0.42 to $0.52 from IRC 45X tax benefits.
  • Excluding the IRA credits, this represents an increase of approximately 22% over the prior year, at the midpoint, reflecting stable demand trends and a healthy backlog.
  • Gross margin in the range of 25.0% to 27.0%, including 150bps to 250bps from IRA credits.
  • Stable demand trends
  • Healthy backlog

Headwinds

  • The IRS has not yet issued additional clarification guidance related to section 45X which could materially increase or decrease the quantity of our U.S. produced batteries that qualify for this credit.
  • Continue to operate in a dynamic macro environment.
  • Geopolitical tensions
  • Higher interest rates
  • Persisting inflation

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.1%

Avg return

Earnings day

+1.1%

Avg return

5 days after

-0.6%

Avg return

30 days after

51%

35 / 69 earnings

Positive

+14.2%

Q2 2023

Best reaction

-14.8%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+11.4%+13.7%+6.5%
Q3 2026-13.9%-6.1%-16.2%
Q2 2026+1.4%+9.2%+16.4%
Q1 2026+3.5%+8.2%+14.0%
Q4 2025-14.8%-11.9%-12.9%
Q3 2025+2.8%+7.4%+7.9%
Q2 2025-3.4%+1.0%-4.4%
Q1 2025-2.0%-0.8%+0.5%
Q4 2024+11.4%+10.6%+9.6%
Q3 2024-6.6%-7.1%-3.6%
Q2 2024-3.8%-1.7%+5.6%
Q1 2024-12.3%-7.3%-5.8%
Q4 2023+12.2%+14.8%+19.4%
Q3 2023+4.5%+6.6%-4.0%
Q2 2023+14.2%+15.9%+12.5%
Q1 2023+1.4%+6.0%-4.0%
Q4 2022+9.9%+11.7%-3.9%
Q3 2022-0.4%-3.7%-0.4%
Q2 2022-3.6%-2.9%-10.1%
Q1 2022-4.4%-6.8%-18.9%
Q4 2021+4.0%+3.2%+7.0%
Q3 2021-1.5%-2.0%+7.2%
Q2 2021-5.5%+0.4%+2.5%
Q1 2021+3.9%+1.6%-9.5%
Q4 2020+1.3%+15.3%-1.4%
Q3 2020-7.3%-7.1%-21.6%
Q2 2020-3.2%-4.0%-0.5%
Q1 2020-10.5%-11.0%-9.3%
Q4 2019-2.6%-3.9%+14.1%
Q3 2019-10.8%-20.4%-22.4%
Q2 2019+4.7%+0.6%-6.5%
Q1 2019-5.2%-7.2%+2.2%
Q4 2018+1.1%+1.1%-5.6%
Q3 2018+6.9%+6.6%+11.4%
Q2 2018+2.3%-1.7%-0.6%
Q1 2018-11.2%-11.7%-10.8%
Q4 2017-11.5%-7.5%-13.5%
Q3 2017-0.3%+0.4%-2.8%
Q2 2017+10.1%+18.2%+25.0%
Q1 2017+7.5%+8.1%+4.7%
Q4 2016+7.0%+8.3%-0.2%
Q3 2016-0.3%
Q2 2016+3.2%
Q1 2016-9.3%
Q4 2015+1.5%
Q3 2015-2.6%
Q2 2015-1.5%
Q1 2015-9.3%
Q4 2014+2.5%
Q3 2014+9.1%
Q2 2014-0.5%
Q1 2014+0.1%
Q4 2013+2.5%
Q3 2013-0.9%
Q2 2013-0.6%
Q1 2013+7.0%
Q4 2009+2.8%
Q4 2012+2.8%
Q3 2012+6.7%
Q2 2012+11.2%
Q1 2012-0.2%
Q4 2011-4.0%
Q3 2011+3.7%
Q3 2010+3.7%
Q2 2011+7.8%
Q2 2010+7.8%
Q1 2011-8.4%
Q1 2010-8.4%
Q4 2010-8.4%

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