EnerSys (ENS) shares rallied after the company reported excellent fourth-quarter results on June 12. Since then shares have traded lower but now appear to have found a stabilization point. This stock is still well in the green for the year, an impressive accomplishment in this environment.

EnerSys develops and distributes industrial batteries. It also offers such related products as power chargers and sells its products both domestically and internationally. EnerSys was founded in 1999, carries a market cap. of $1.62 billion and is headquartered in Reading Pennsylvania.

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 June 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

This stock rallied from on news of the great quarter, eventually topping off at over $37 a share. Since then, shares have retreated but now appear to have formed a short-term bottom between $31 and $33. Moving forward, the key to the formation is this stock’s ability to jump past the resistance level just above $33.

Content Courtesy: Zacks Investment Research

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