What Happened?
Shares of battery manufacturer EnerSys (NYSE: ENS) fell 12.7% in the afternoon session after the company reported fourth-quarter results that missed revenue expectations and showed a decline in sales volume, raising concerns about slowing demand.
The company posted fourth-quarter revenue of $919.1 million, which fell 1.4% short of analysts' estimates of $932 million. This miss was driven by a 4% year-on-year decrease in sales volumes, signaling potential weakness in its end markets. While EnerSys's adjusted earnings of $2.77 per share narrowly beat Wall Street's forecast, and its guidance for the next quarter was solid, investors appeared more concerned with the current sales slowdown. The negative free cash flow of $13.1 million for the quarter, a sharp drop from a positive $56.8 million in the same period last year, likely added to investor worries about the company's short-term performance.
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What Is The Market Telling Us
EnerSys’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. Moves this big are rare for EnerSys and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock gained 6.3% on the news that a softened tone from President Donald Trump on U.S.-China relations boosted investor sentiment. The positive shift followed a weekend post on Truth Social where Trump stated, "Don't worry about China, it will all be fine!" and expressed a desire to help rather than hurt the country's economy. This statement provided significant relief to markets that had ended the prior week with steep losses. In response, the Nasdaq Composite jumped 2.2%, the S&P 500 gained 1.6%, and the Dow Jones Industrial Average closed 1.3% higher, as investors' fears of escalating trade tensions subsided.
EnerSys is up 5.9% since the beginning of the year, but at $159.65 per share, it is still trading 15.9% below its 52-week high of $189.93 from February 2026. Investors who bought $1,000 worth of EnerSys’s shares 5 years ago would now be looking at an investment worth $1,768.
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