EnerSys Q4 2023 Earnings Report
Key Takeaways
EnerSys reported an outstanding fourth quarter with record revenue of $990 million, a 9% increase year-over-year. The company achieved significant gross margin improvement and realized record GAAP diluted EPS of $1.59 and adjusted diluted EPS of $1.82.
Delivered record net sales of $990M, a 9% increase.
Achieved a gross margin of 24.9%, up 340 bps, including a $17M reduction to COGS from Inflation Reduction Act (IRA) tax credits.
Generated record operating earnings of $95M, up 114%, and adjusted operating earnings of $107 million, up 60%.
Realized record diluted EPS of $1.59, up 137%, and adjusted diluted EPS of $1.82, up 52%.
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EnerSys Revenue by Segment
Forward Guidance
EnerSys expects to operate in a dynamic macro environment and anticipates headwinds including FX, geopolitical tensions, supply chain challenges and inflation to persist. For the first quarter of fiscal 2024, the company expects adjusted diluted earnings per share to be in the range of $1.77 to $1.87, inclusive of $0.40 - $0.50 from IRA benefits.
Positive Outlook
- Adjusted diluted earnings per share to be in the range of $1.77 to $1.87, inclusive of $0.40 - $0.50 from IRA benefits.
- Excluding the IRA credits, this represents an increase of approximately 20% over the prior year, at the midpoint.
- Stable demand trends.
- Healthy backlog.
- Gross margin for the first quarter of fiscal 2024 to be in the range of 24.5% to 26.5% including 150 bps to 250bps from 45X tax credits.
Challenges Ahead
- Significant uncertainty in the global markets remains.
- Expect to continue to operate in a dynamic macro environment.
- Anticipate headwinds including FX to persist.
- Anticipate headwinds including geopolitical tensions to persist.
- Anticipate headwinds including supply chain challenges and inflation to persist.
Revenue & Expenses
Visualization of income flow from segment revenue to net income