Enersys (ENS) Wednesday reported a higher third-quarter profit, with record adjusted earnings which came in well ahead of Street estimates. The company's earnings outlook for the fourth quarter is also stronger than analysts' expectations.
For its third quarter ended January 1, Enersys' net income rose to $36.8 million or $0.77 per share from $33.7 million or $0.67 per share last year.
Results for both periods included charges related to restructuring plans and fees related to acquisition activities.
Excluding items, adjusted net earnings was $0.80, up from $0.71 per share last year. On average, 9 analysts polled by Thomson Reuters expected earnings of $0.69 per share forthe quarter. Analysts' estimates typically exclude special items.
John Craig, chairman, president and chief executive officer, said," Our third quarter adjusted earnings of $0.80 per diluted share are the highest quarterly earnings in our Company's history."
The stored energy solutions company's net sales for the quarter increased 13 percent to $574.2 million from $508.6 million last year, coming in ahead of Street estimate of $560.5 million. Sequentially, revenues increased 5 percent from the third quarter.
The growth over last year was attributed to a 4 percent increase in organic volume, a 3 percent increase due to pricing and a 6 percent increase from acquisitions.
Craig said," I am very pleased with our performance especially given the current global economic environment. I am also excited about the opportunities presented by our recent investments in South America and South Africa and the addition of the GAIA technology to our lithium product offering."
For the fourth quarter, the Reading, Pennsylvania-headquartered company expects adjusted net earnings between $0.86 to $0.90, which excludes the expected charge of $0.07 from its ongoing restructuring programs and acquisition expenses. The Street expects earnings of $0.73 per share for the fourth quarter.
Craig said," The increasing sequential quarterly earnings are due to the fourth quarter seasonally being our strongest earnings quarter, lower commodity costs and relatively stable volumes."
ENS closed Wednesday's regular trade at $31.85, up $0.71 or 2.28%, on the NYSE. In the after-hours, the stock gained $2.25 or 7.06%.
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