EnerSys (ENS) Misses Q3 EPS by 8c, Revenues Miss; Offers Q4 EPS Guidance Below Consensus

EnerSys (NYSE: ENS) reported Q3 EPS of $1.17, $0.08 worse than the analyst estimate of $1.25. Revenue for the quarter came in at $680 million versus the consensus estimate of $685.85 million.

“Our third quarter results were lower than guidance mainly due to lower U.S. telecommunications sales resulting from recent restructuring initiatives at our key customers. We believe this restructuring is largely to finance future investment in 5G network upgrades. In addition we experienced higher than projected freight costs in the quarter,” stated David M. Shaffer, President and Chief Executive Officer of EnerSys. “However, the carriers continue to forecast substantial purchasing increases for DC power products in calendar year 2019.” Mr. Shaffer added, “Our fourth quarter guidance for non-GAAP adjusted net earnings per diluted share is between $1.41 to $1.45, which excludes an expected charge of $0.30 primarily from Alpha related inventory step up costs, as well as other highlighted items related to restructuring programs and ERP system implementation expenses. Our guidance at its midpoint reflects approximately $1.40 of legacy EnerSys business and $.06 from Alpha, with the combined results diluted by approximately $.03 from the issuance of 1.18 million shares to the seller on the Alpha transaction.”

GUIDANCE:

EnerSys sees Q4 2019 EPS of $1.41-$1.45, versus the consensus of $1.49.

For earnings history and earnings-related data on EnerSys (ENS) click here.

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