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EnerSys Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Simply Wall St
·4 min read

EnerSys (NYSE:ENS) just released its latest third-quarter report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at US$764m, statutory earnings missed forecasts by an incredible 44%, coming in at just US$0.64 per share. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for EnerSys

NYSE:ENS Past and Future Earnings, February 7th 2020
NYSE:ENS Past and Future Earnings, February 7th 2020

Taking into account the latest results, the most recent consensus for EnerSys from three analysts is for revenues of US$3.37b in 2021, which is a notable 8.5% increase on its sales over the past 12 months. Statutory earnings per share are expected to shoot up 64% to US$6.06. Before this earnings report, analysts had been forecasting revenues of US$3.35b and earnings per share (EPS) of US$6.10 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$87.00, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on EnerSys, with the most bullish analyst valuing it at US$102 and the most bearish at US$79.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that analysts have a clear view on its prospects.

Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. Analysts are definitely expecting EnerSys's growth to accelerate, with the forecast 8.5% growth ranking favourably alongside historical growth of 4.7% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 2.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, analysts also expect EnerSys to grow faster than the wider market.

The Bottom Line

The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - and our data does suggest that EnerSys's revenues are expected to grow faster than the wider market. The consensus price target held steady at US$87.00, with the latest estimates not enough to have an impact on analysts' estimated valuations.

With that in mind, we wouldn't be too quick to come to a conclusion on EnerSys. Long-term earnings power is much more important than next year's profits. We have forecasts for EnerSys going out to 2022, and you can see them free on our platform here.

You can also view our analysis of EnerSys's balance sheet, and whether we think EnerSys is carrying too much debt, for free on our platform here.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.