EnerSys shares underperform despite projected significant earnings growth

EnerSys (NYSE:) shares closed at $85.93 on Wednesday, marking a modest 0.41% rise. Despite this increase, the company’s performance fell short compared to the S&P 500’s daily gain of 1.05%, Dow’s gain of 0.67%, and Nasdaq’s gain of 1.64%. Over the past month, EnerSys’s shares have seen an 8.3% loss, surpassing the Industrial Products sector’s loss of 5.03% and the S&P 500’s loss of 2.21%.

The company has an anticipated earnings report due on November 8, 2023. Analysts project a significant EPS growth of 63.06% to $1.81 and a moderate revenue increase of 1.39% to $911.9 million for this period. These figures reflect near-term business trends and analysts’ favorable outlook towards the company.

For the full fiscal year, expectations indicate a +45.32% change in earnings per share to $7.76 and a +1.04% change in revenue to $3.75 billion.

InvestingPro Insights

InvestingPro data provides a comprehensive view of EnerSys’s financial health and market position. With a market cap of 3530M USD and a P/E ratio of 16.55, EnerSys is trading at a low P/E ratio relative to its near-term earnings growth, as per InvestingPro Tips. The company also boasts an impressive revenue of 3718.18M USD as of Q1 2024, reflecting a growth of 8.04% in the last twelve months.

InvestingPro Tips also highlight that EnerSys has maintained dividend payments for 11 consecutive years, which is a testament to its strong financial health. This is further supported by the fact that the company operates with a moderate level of debt and its liquid assets exceed short term obligations.

InvestingPro offers a wealth of additional insights and tips, with nine more available for EnerSys alone. This data, combined with real-time metrics, can offer invaluable guidance to potential investors and market enthusiasts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.