READING, Pa. - EnerSys (NYSE:ENS), a global leader in stored energy solutions for industrial applications, has reported its financial results for the fourth quarter of fiscal year 2024, ending March 31, 2024. The company announced a fourth-quarter adjusted EPS of $2.08, surpassing analyst expectations by $0.07, as consensus estimates predicted an EPS of $2.01. Revenue for the quarter was also higher than anticipated, coming in at $911 million against the consensus estimate of $893.64 million.
The company experienced a decline in net sales of 8% compared to the same quarter last year, primarily due to temporary spending pauses in the telecom and broadband sectors. Despite the drop in sales, EnerSys achieved a gross margin of 27.9%, a significant improvement of 300 basis points from the previous year, and an adjusted gross margin of 28.0%, up 310 basis points, including a $36 million benefit from Inflation Reduction Act / IRC 45X tax credits.
David M. Shaffer, President and Chief Executive Officer, highlighted the company's strong finish to the fiscal year, with adjusted earnings per share at the high end of their guidance range. He noted the gross margin improvement and adjusted operating earnings growth in their base business, bolstered by IRC 45X tax credits. Shaffer also mentioned the strategic positioning of EnerSys to capitalize on the growing global demand for reliable power, driven by energy scarcity concerns and rapid growth in demand.
Looking ahead to the first quarter of fiscal 2025, EnerSys expects net sales in the range of $860M to $900M and adjusted diluted earnings per share in the range of $1.93 to $2.03. For the full year fiscal 2025, the company anticipates net sales between $3,675M and $3,825M and adjusted diluted earnings per share ranging from $8.55 to $8.95, inclusive of IRC 45X tax benefits under the IRA. The company's CFO, Andrea Funk, expressed optimism about the business trajectory and the company's positioning to deliver innovative products aligned with secular trends.
EnerSys' financial performance demonstrates resilience and strategic foresight in a challenging environment, with a focus on long-term growth and shareholder value. The company's adjusted EPS and revenue beat, coupled with positive guidance for the upcoming fiscal year, reflect its robust business model and adaptability in the face of market fluctuations.
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