Earnings Beat: EnerSys Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

It's been a good week for EnerSys (NYSE:ENS) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.7% to US$99.72. Results look mixed - while revenue fell marginally short of analyst estimates at US$906m, statutory earnings beat expectations 6.1%, with EnerSys reporting profits of US$2.88 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on EnerSys after the latest results.

View our latest analysis for EnerSys

Taking into account the latest results, the most recent consensus for EnerSys from six analysts is for revenues of US$3.80b in 2026. If met, it would imply an okay 6.8% increase on its revenue over the past 12 months. Per-share earnings are expected to step up 13% to US$9.42. In the lead-up to this report, the analysts had been modelling revenues of US$3.84b and earnings per share (EPS) of US$8.99 in 2026. So the consensus seems to have become somewhat more optimistic on EnerSys' earnings potential following these results.

There's been no major changes to the consensus price target of US$115, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on EnerSys, with the most bullish analyst valuing it at US$121 and the most bearish at US$105 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting EnerSys is an easy business to forecast or the the analysts are all using similar assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 5.4% growth on an annualised basis. That is in line with its 4.6% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 8.7% annually. So although EnerSys is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards EnerSys following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$115, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for EnerSys going out to 2027, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with EnerSys , and understanding it should be part of your investment process.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.