NYSE$ENS

EnerSys · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

EnerSys reported Q3 2024 results, with a gross margin of 28.9%, up 570 basis points year-over-year, and EPS of $1.86, up 72% year-over-year.

EnerSys reported net sales of $862 million, a decrease of 6% year-over-year, primarily driven by temporary spending pauses in telecom and broadband. The company achieved a gross margin of 28.9%, including a $59 million benefit from Inflation Reduction Act / IRC 45X tax credits, and an adjusted EPS of $2.56, up 102% year-over-year. Net leverage was reduced to 1.1x EBITDA on operating cash flow of $135 million.

  • Net sales were $862M, down 6%, due to temporary spending pauses in telecom and broadband.
  • Gross margin reached 28.9%, up 570 bps, including a $59M benefit from IRC 45X tax credits.
  • Operating earnings were $93M, up 18%, and adjusted operating earnings were $130M, up 53%.
  • Diluted EPS was $1.86, up 72%, and adjusted diluted EPS was $2.56, up 102%.

Headline financials

Total Revenue

$862M

Previous: $920M-6.4%
EPS

$1.86

Previous: $1.27+46.5%
Change in Sales due to Organic Volume

-7.0%

Previous: 5.0%-240.0%
Change in Sales due to Pricing

1.0%

Previous: 8.0%-87.5%
Capital Expenditures

-$59M

Previous: $17.9M-430.4%
Free Cash Flow

$17.2M

Previous: $188M-90.9%
Net Income

$76.2M

Previous: $44.4M+71.5%
Operating Income

$92.6M

Previous: $78.5M+18.0%
Gross Profit

$249M

Previous: $214M+16.4%
Cash & Equivalents

$333M

Previous: $298M+11.6%
Total Assets

$3.5B

Previous: $3.57B-1.8%
Stock-Based Comp

$9.82M

Previous: $6.91M+42.2%

Revenue & EPS history

EnerSys · Revenue · Quarterly

$862M

Q3 2024-6.4%vs Q3 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

EnerSys · $988M total across 3 segments · Q4 2026

  • Energy Systems
    $426M
  • Motive Power
    $370M
  • Specialty
    $192M

Forward guidance

For the fourth quarter of fiscal 2024, EnerSys expects adjusted diluted earnings per share in the range of $1.98 to $2.08, including $0.80 to $0.90 from IRC 45X tax benefits under the IRA, and gross margin in the range of 26.0% to 28.0%, including 350bps to 410bps from IRA credits. Full year capital expenditures are expected to be in the range of $80 million to $100 million.

Tailwinds

  • Ability to maintain pricing.
  • Healthy demand trends in the majority of end markets
  • Well-positioned to capitalize on market opportunities
  • Delivering innovative products aligned with secular trends.

Headwinds

  • Temporary spending pauses by telecom and broadband customers.
  • IRS has not yet finalized guidance related to section 45X, which could materially increase or decrease the quantity of U.S. produced batteries that qualify for this credit.
  • Uncertainty of the occurrence or timing of future excluded items
  • difficult to predict
  • dependent on future events that are less capable of being controlled or reliably predicted by management

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 Q3 2024

Historical avgQ3 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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