Enersys (NYSE:ENS) Shares Gap Up After Strong Earnings

Enersys (NYSE:ENS)’s stock price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $186.72, but opened at $211.00. Enersys shares last traded at $205.2590, with a volume of 309,259 shares changing hands.

The industrial products company reported $3.66 earnings per share for the quarter, beating the consensus estimate of $2.83 by $0.83. The business had revenue of $935.64 million for the quarter, compared to analysts’ expectations of $928.01 million. Enersys had a net margin of 7.83% and a return on equity of 21.39%. The firm’s revenue for the quarter was up 4.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.08 earnings per share. Enersys has set its Q2 2027 guidance at 1.950-2.050 EPS.

Enersys Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 2nd. Stockholders of record on Friday, September 18th will be paid a dividend of $0.2875 per share. This represents a $1.15 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend is Friday, September 18th. This is a positive change from Enersys’s previous quarterly dividend of $0.26. Enersys’s payout ratio is presently 13.62%.

Enersys News Summary

Here are the key news stories impacting Enersys this week:

• Positive Sentiment: Significant earnings beat: EnerSys reported quarterly EPS of $3.66, well above the approximately $2.82–$2.83 consensus estimate and up from $2.08 a year earlier. Revenue increased 4.8% year over year to $935.6 million, exceeding expectations of roughly $928 million. EnerSys Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: Profitability and cash flow improved: Gross profit rose 23.7% to $313.4 million, operating profit climbed 75.1% to $151.4 million, and operating cash flow reached $230.2 million. The company ended the quarter with $530.7 million in cash, while total liabilities declined, supporting the bullish reaction to the results. EnerSys Stock Rises on Q1 2027 Earnings
• Positive Sentiment: Dividend raised: EnerSys increased its quarterly dividend 10% to $0.2875 per share, payable October 2 to shareholders of record September 18. The increase signals management’s confidence in earnings growth and cash generation, though the annualized yield remains modest at approximately 0.6%. EnerSys Announces Dividend Increase
• Positive Sentiment: Analyst remains bullish: BTIG Research reaffirmed its “Buy” rating and $280 price target, implying substantial upside from the reference price of $186.96. The target is above the recent $250 target from Oppenheimer. BTIG Reaffirms Buy Rating
• Negative Sentiment: Next-quarter EPS outlook missed expectations: EnerSys guided fiscal second-quarter 2027 EPS to $1.95–$2.05, below the $2.94 consensus estimate. Revenue guidance of $955 million–$995 million was broadly in line with the $974.7 million consensus, making the earnings outlook the main downside risk.

Wall Street Analyst Weigh In

Several analysts have commented on the stock. Wall Street Zen lowered shares of Enersys from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 18th. TD Cowen raised their target price on Enersys from $220.00 to $265.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. Roth Capital restated a “buy” rating and set a $265.00 price target on shares of Enersys in a research report on Friday, May 22nd. Oppenheimer upped their price target on Enersys from $210.00 to $250.00 and gave the stock an “outperform” rating in a research note on Friday, May 22nd. Finally, Weiss Ratings downgraded Enersys from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, June 26th. Five analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $265.00.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ENS. Global Retirement Partners LLC purchased a new stake in shares of Enersys in the second quarter worth $34,000. Quantbot Technologies LP purchased a new position in shares of Enersys in the 2nd quarter worth about $39,000. CIBC Private Wealth Group LLC raised its position in shares of Enersys by 116.7% in the 4th quarter. CIBC Private Wealth Group LLC now owns 182 shares of the industrial products company’s stock worth $27,000 after purchasing an additional 98 shares during the last quarter. Los Angeles Capital Management LLC bought a new position in Enersys in the 4th quarter worth about $30,000. Finally, SBI Securities Co. Ltd. boosted its stake in Enersys by 239.7% in the 4th quarter. SBI Securities Co. Ltd. now owns 214 shares of the industrial products company’s stock worth $31,000 after purchasing an additional 151 shares in the last quarter. Institutional investors own 94.93% of the company’s stock.

Enersys Stock Up 9.6%

The company’s 50-day moving average is $207.59 and its 200 day moving average is $197.04. The company has a market capitalization of $7.46 billion, a PE ratio of 26.54, a P/E/G ratio of 1.03 and a beta of 1.19. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.76 and a current ratio of 2.66.

Enersys Company Profile

Enersys, headquartered in Reading, Pennsylvania, is a global leader in stored energy solutions, specializing in manufacturing and distributing industrial batteries, battery chargers, power equipment, and related accessories. The company serves a diverse range of end markets, including telecommunications, data centers, medical, aerospace, defense, electric vehicle motive power, and utility outcomes. Its products are engineered to deliver critical reserve power and motive power applications across key infrastructure and industrial sectors.

The company’s product portfolio encompasses lead-acid batteries, lithium-ion energy storage systems, chargers, inverters, power management software, and a broad array of battery accessories.