ENERSYS Reports Third Quarter FY2023 Earnings Results for Period Ending December 31, 2022
April 2, 2023
Earnings Overview
ENERSYS ($NYSE:ENS) announced on February 8, 2023 that they had achieved total revenue of USD 44.4 million and a reported net income of USD 920.2 million for the third quarter of their fiscal year 2023, ending December 31, 2022. This represented a 22.5% and 9.0% year-over-year increase respectively.
Transcripts Simplified
Net sales for Q3 ’23 increased by 9% to $920 million, compared to Q3 ’22. Adjusted operating earnings were $85 million, up 41% from Q3 ’22 and 30% higher than Q2. Foreign exchange negatively impacted our year-on-year and sequential comparisons by approximately $6 million and $2 million respectively. 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.
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, compared to the prior year, 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…
| Total Revenues | Net Income | Net Margin |
| 3.63k | 137.95 | 4.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Enersys. More…
| Operations | Investing | Financing |
| 148.29 | -35.26 | -180.71 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Enersys. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.57k | 2.04k | 37.4 |
Key Ratios Snapshot
Some of the financial key ratios for Enersys are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.3% | -1.0% | 6.3% |
| FCF Margin | ROE | ROA |
| 1.9% | 9.7% | 4.0% |
Market Price
On Wednesday, ENERSYS announced their third quarter earnings results for the period ending December 31, 2022. The stock opened at $85.9 and closed at $86.2, down by 0.9% from the previous closing price of $87.0. Overall, ENERSYS is showing positive signs of growth and stability despite the volatile nature of the market. The company’s stock has remained relatively steady, and their third quarter earnings report is encouraging news for investors who are looking for a reliable investment. Live Quote…
Analysis
At GoodWhale, we provide financial analysis on ENERSYS, so investors can make informed decisions about their investments. Our Risk Rating has identified that ENERSYS is a medium risk investment in terms of financial and business aspects. After a thorough analysis, we have detected two risk warnings in ENERSYS’s income statement and balance sheet. If you are interested in learning more about the risk warnings associated with ENERSYS, please register on our website at goodwhale.com to get access to the full report. With this information, you can make the best decision for your investments. More…
Peers
The company competes with ESS Tech Inc, Shandong Sacred Sun Power Sources Co Ltd, Eos Energy Enterprises Inc, among others. EnerSys has a diversified product portfolio and a strong market position. The company’s products are used in a variety of applications including material handling, oil and gas, power generation, transportation, and other industrial applications.
– ESS Tech Inc ($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
Investors in ENERSYS can be encouraged by the company’s impressive financial performance for the third quarter of FY2023, as total revenue increased 22.5% year-over-year to USD 44.4 million and net income rose 9.0% to USD 920.2 million. Operating cash flow also increased significantly, helping bolster ENERSYS’ balance sheet. This performance is indicative of the company’s ability to weather challenging macroeconomic conditions and adapt their business to meet changing consumer demand. This could make ENERSYS an attractive investment opportunity in the near future.
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