EnerSys (ENS) shares surged in after-hours trading Wednesday, reversing a regular-session decline, after the industrial battery and power systems company reported fiscal fourth-quarter results that topped analyst expectations and issued a first-quarter outlook that exceeded forecasts.
The stock closed the regular session down 1.3% at $214.56, but later quoted up 5.8% to $227 in after-hours trading on Google Finance, with volume of 708,643 shares. The earnings release came after the New York Stock Exchange close, shifting investor focus to the company's Thursday morning conference call.
For the fiscal fourth quarter ended March 31, EnerSys reported adjusted earnings per share of $3.19, above the analyst consensus estimate of $2.98, according to Investing.com. Revenue came in at $988.0 million, surpassing the $973.14 million consensus and rising 1.3% year over year. Under standard accounting rules, net earnings fell to $77.3 million, or $2.05 per diluted share, from $96.5 million, or $2.41 per share, a year earlier.
Management pointed to robust demand from data centers, communications, and aerospace and defense markets as key growth drivers. However, the company noted continued softness in its Motive Power and Transportation segments, highlighting a mixed demand environment. Chief Executive Shawn O'Connell characterized the quarter as the company's "second highest revenue quarter in history" and highlighted progress on a lithium-based data-center product and a battery energy storage system for warehouse operators.
For the first quarter of fiscal 2027, EnerSys guided adjusted diluted EPS in the range of $2.70 to $2.90, above the consensus midpoint of $2.62 cited by Investing.com. The company expects net sales of $915 million to $955 million. The guidance includes the benefit of 45X production credits, a U.S. advanced manufacturing tax credit. Excluding those benefits, adjusted diluted EPS is expected to be $1.61 to $1.71.
For the full fiscal year, EnerSys reported record net sales of $3.75 billion, up 4% year over year, and adjusted diluted EPS of $10.56, also up 4%. The company generated $548 million in operating cash flow and returned $409 million to shareholders through share buybacks and dividends. A quarterly cash dividend of $0.2625 per share was declared, payable July 2 to shareholders of record on June 19.
Despite the upbeat headline numbers, some cautionary signals emerged. Fourth-quarter organic volume fell 6%, and gross margin contracted to 29.4% from 31.2% a year earlier, raising concerns about pricing power and cost pressures. The company also flagged risks related to interest rates, inflation, trade policy, tariffs, supply chains, and government priorities, underscoring the cyclical nature of its industrial markets.
The broader market context added a layer of intrigue: EnerSys fell during Wednesday's regular session even as major U.S. indexes rose, with the S&P 500 up 1.08%, the Nasdaq up 1.55%, and the Dow up 1.31%, according to Investing.com. The after-hours rebound suggests investors are betting that the company's data-center and defense exposure can offset ongoing weakness in industrial vehicle demand.
EnerSys will host its earnings conference call at 9 a.m. ET on Thursday and plans to provide further detail at an investor day scheduled for June 11 at the New York Stock Exchange. The company's competitive positioning in the data-center power market, alongside peers such as Eaton and Vertiv, remains a key focus as AI and cloud workloads drive demand for backup and distribution equipment.
