ENERSYS Reports 22.5% Increase in Total Revenue, 9.0% Rise in Net Income for Q3 FY2023

Earnings Overview

On February 8, 2023, ENERSYS ($NYSE:ENS) reported that its total revenue for the third quarter of FY2023, ending on December 31 2022, had increased by 22.5% compared to the same period the previous year, reaching USD 44.4 million. Additionally, its reported net income increased by 9.0% year over year to USD 920.2 million.

Transcripts Simplified

Third quarter fiscal ’23 net sales increased 9% over the prior year to a record $920 million, even after absorbing roughly $35 million of foreign exchange offsets. Adjusted operating earnings were also a record at $85 million in the third quarter, up 41% from Q3 ’22 and 30% higher than Q2. Adjusted EBITDA for the third quarter was $98 million and 10.7% of net sales, compared to $79 million and 9.4% of net sales in the prior year third quarter. Our adjusted EPS was $1.27 in the third quarter of fiscal ’23, up 26% from $1.01 in Q3 ’22 and up 14% from the $1.11 in the second quarter.

On a segment basis, all lines of business posted strong revenue growth, driven by substantial price/mix improvements, which were partially offset by foreign exchange headwinds. Energy Systems delivered significant improvement to adjusted operating earnings as a result of impressive price/mix cost recapture taking hold for the second consecutive quarter, with nearly 170% adjusted OE improvement versus prior year and over 60% improvement sequentially.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Enersys. More…

Cash Flow Snapshot

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Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Enersys. More…

Key Ratios Snapshot

Some of the financial key ratios for Enersys are shown below. More…

Price History

On Wednesday, ENERSYS reported a 22.5% increase in total revenue and a 9.0% jump in net income for the third quarter of fiscal year 2023. While the stock opened at $85.9 and closed at $86.2, it was still down by 0.9% from the prior closing price of 87.0, causing many investors to become concerned about the future prospects of the company. The company attributed this positive growth to its continued investments in research and development, as well as its focus on securing new contracts and expanding into new markets. The strong performance of ENERSYS’s third quarter was also driven by its strategic partnerships with other companies, as well as its focus on cost-cutting strategies and efficient operations.

Additionally, the company took advantage of strong economic conditions in the third quarter to drive further growth and increase profits. Overall, ENERSYS’s Q3 FY2023 results reflect the company’s commitment to delivering long-term growth and value for its shareholders. Despite the slight dip in stock price on the news, investors remain optimistic about ENERSYS’s future prospects and expect further positive results going forward. Live Quote…

Analysis

At GoodWhale, we are always here to help you make informed decisions when investing your hard-earned money. That’s why we’ve taken the time to analyze ENERSYS‘s financials and provide you with an easy-to-understand risk rating. After our review, we found that ENERSYS is a medium risk investment in terms of financial and business aspects. In addition, our review also revealed two risk warnings in its income sheet and balance sheet. If you’d like to get further insight into these risk warnings, simply register with us and we’ll be happy to provide you with further information. With GoodWhale, you can rest assured that you’re making the right decisions when it comes to investing. More…

Peers

The company competes with ESS Tech Inc, Shandong Sacred Sun Power Sources Co Ltd, Eos Energy Enterprises Inc, among others. EnerSys has a diversified product portfolio and a strong market position. The company’s products are used in a variety of applications including material handling, oil and gas, power generation, transportation, and other industrial applications.

– ESS Tech Inc ($NYSE:GWH)

Founder and CEO of the company is Jean-luc Roy. The company provides software for the management and analysis of data. The company went public in May of 2017. The company’s market cap as of December of 2020 was $525.68 million. The company’s ROE as of December of 2020 was -188.29%.

– Shandong Sacred Sun Power Sources Co Ltd ($SZSE:002580)

Shandong Sacred Sun Power Sources Co Ltd is a leading manufacturer of solar panels and related products. The company has a market cap of 4.97B as of 2022 and a return on equity of 4.18%. The company’s products are used in a variety of applications, including solar power plants, residential and commercial rooftops, and portable solar power systems.

– Eos Energy Enterprises Inc ($NASDAQ:EOSE)

Eos Energy Enterprises Inc is a publicly traded company with a market capitalization of 86.7 million as of 2022. The company has a return on equity of 163.71%. Eos Energy Enterprises Inc is engaged in the business of developing and commercializing energy storage solutions based on zinc-air batteries.

Summary

Enersys has reported impressive revenue and net income growth in its third quarter of fiscal year 2023. Total revenue increased by 22.5% year over year to USD 44.4 million, while net income rose by 9.0% year over year to USD 920.2 million. This indicates strong performance by the company and is a positive sign for investors. It also suggests that Enersys’ products and services continue to be beneficial to customers, and sales remain strong in spite of ongoing economic uncertainty.

Additionally, with new product offerings on the horizon, investors should remain confident in Enersys’ ability to continue its growth trajectory in the future.