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Jan 01, 2023
EnerSys Q3 2023 Earnings Report
EnerSys reported record revenue and expanded gross margin.
Key Takeaways
EnerSys reported a strong third quarter with record revenue of $920 million, a 9% increase year-over-year. GAAP operating earnings improved 53% to $79 million, and adjusted operating earnings also reached a record of $85 million, a 41% increase year-over-year. The company saw significant gross margin improvement, up 150 basis points sequentially to 23.2%.
Record net sales of $920 million, +9% y/y, and +13% y/y in Constant Currency.
Gross Margin of 23.2%, +150 bps sequentially, +140 bps y/y as price/mix improvements eclipsed sequential cost increases.
Operating earnings were $79 million, +53% y/y; Record adjusted operating earnings $85 million, +41% y/y.
Backlog of $1.3 billion, +11% y/y, remains healthy supported by robust demand and order trends across all segments.
Revenue by Segment
Forward Guidance
For the fourth quarter of fiscal 2023, EnerSys expects adjusted diluted earnings per share in the range of $1.33 to $1.43 and gross margin to be in the range of 22% - 24%. For the full year of fiscal 2023, capital expenditures are expected to be approximately $90 million.
Positive Outlook
- Sequential volume and price/mix improvement.
- Strong demand trends.
- Healthy backlog.
- Large portions of business are cycle-independent.
- Significant cash flow generation during past recessionary periods.
Challenges Ahead
- Dynamic macro environment.
- FX and interest rate headwinds.
- Easing but still unpredictable supply chain.
- European utility inflation.
- Potential economic slowdown.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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