EnerSys Inc. (ENS) recently reported second-quarter fiscal 2015 (three months ended Sep 28, 2014) financial numbers with non-GAAP earnings of $1.06 a share surpassing the Zacks Consensus Estimate of $1.02 by 3.9% and also outperforming the company guidance of $1.00-$1.04. Moreover, quarterly earnings were up 21.8% year over year, primarily driven by strong order intake and robust backlog along with rising sales in the company’s premium offerings.
Total revenue for the second quarter came in at $629.9 million, reflecting a 10.7% year over year increase from $568.8 million reported in the prior-year quarter. The increase in revenue was mainly driven by a healthy organic growth and recent accretive acquisitions. However, the revenue figure lagged the Zacks Consensus Estimate of $635 million.
On a sequential basis, revenues declined 1% from $634.1 million in the last quarter due to adverse foreign currency translations.
Segment Details
Revenues at the Americas segment came in at $333.2 million, up 15.8% year over year while the operating earnings declined 2.3% at $42.9 million.
Revenues in the EMEA segment grew 4.5% year over year to $233.3 million while operating earnings for the segment grew 71.7% to $26.1 million in the quarter.
Asia segment’s reported revenues grew 9.7% year over year to $63.4 million while operating earnings at the business improved 9.8% to $4.5 million.
Margins
Gross profit for the quarter increased 12.6% year over year to $162.5 million from $144.3 million in the prior-year quarter, while gross margin expanded 40 basis points (bps) to 25.8%. Meanwhile, the operating margin for the quarter rose 200 bps to 12.7%.
Outlook
The company also provided guidance for the third quarter of fiscal 2015. EnerSys expects non-GAAP earnings per share in the band of $1.04–$1.08. This guidance excludes an expected net charge of 10 cents from ongoing restructuring programs and acquisition expenses.
Zacks Rank
EnerSys currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include Pernix Group Inc (PRXG), CUI Global, Inc. (CUI) and AO Smith Corp. (AOS).All three carry a Zacks Rank #2 (Buy).
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