EnerSys (ENS) Q3 Earnings Report Preview: What To Look For

Battery manufacturer EnerSys (NYSE:ENS) will be reporting earnings tomorrow after market hours. Here’s what to look for.

EnerSys missed analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $852.9 million, down 6.1% year on year. It was a satisfactory quarter for the company, with optimistic earnings guidance for the full year but a miss of analysts’ EBITDA estimates.

Is EnerSys a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting EnerSys’s revenue to decline 1.5% year on year to $887.8 million, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $2.07 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. EnerSys has missed Wall Street’s revenue estimates five times over the last two years.

Looking at EnerSys’s peers in the renewable energy segment, some have already reported their Q3 results, giving us a hint as to what we can expect. American Superconductor delivered year-on-year revenue growth of 60.2%, beating analysts’ expectations by 6.1%, and Generac reported revenues up 9.6%, topping estimates by 1%. American Superconductor’s stock price was unchanged after the results, and Generac’s price followed a similar reaction.

Read our full analysis of American Superconductor’s results here and Generac’s results here.

Investors in the renewable energy segment have had steady hands going into earnings, with share prices flat over the last month. EnerSys is down 3.5% during the same time and is heading into earnings with an average analyst price target of $115.20 (compared to the current share price of $97.30).

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