EnerSys: Buy Alert

EnerSys (ENS) recently posted very impressive fourth-quarter and full-year results the included an 84%
EnerSys manufactures and distributes industrial batteries both domestically and internationally. The company was founded in 1999, carries a market cap. of $1.8 billion and is headquartered in Reading, Pennsylvania.

Very Impressive Fourth-Quarter and Full-Year Results

Enersys shares recently surged higher after the company reported very strong fourth-quarter and full-year results on Jun 12.

Revenue was up more than 40% from the same period last year to $581.9 million. Net income came very close to doubling, jumping to $19.5 million from $10.6 million last year. This produced adjusted net earnings of 42 cents per share, safely ahead of analyst expectations of 38 cents per share.

Net earnings for fiscal 2008 were $59.7 million, up from $45.2 million in fiscal 2007.

Estimates Revised Upward

After the impressive full-year and fourth-quarter results, EnerSys boosted its full-year guidance. The current-year estimate now stands at $2.09, up 24 cents from just seven days ago.

Enersys also distinguishes itself in a number of key statistical categories. Its net profit margin stands at 2.95% against the industry average of 1.58%. The company’s ROE is an impressive 11.14%, easily trumping the industry average of 7.45%. Enersys also has a strong balance sheet, boasting a debt to equity ratio of just .54%.

The Chart

After the great quarter, shares of SNE kicked off a very nice rally that is still very much in play. Within the last couple of days, shares have been building on their gains. A key level at $37, which is also the 52-week and all-time high, is under considerable pressure, but has yet to be breached. A strong close above this level should signal that this stock is ready to accelerate. Take a look at the chart below.

Subscribe by RSS Subscribe by Email