Earnings Play: EnerSys

How to play EnerSys's earnings release

Trading floor 1

On Monday, after market, EnerSys (ENS) is expected to report fourth quarter EPS of $1.18 compared to $1.43 a year ago on revenue of approximately $771.5M vs. $796.6M last year. The company is one of the world's leading producers and distributors of industrial batteries and on Wednesday, the company announced that John F. Lehman and Dennis S. Marlo will be retiring from the Board of Directors at the next annual meeting on July 30th.     

Looking at a daily chart, EnerSys's stock price has found resistance around the $66.00 level after price gapped above the 200-day moving average at the start of this week's trading.  Price has been rising within an ascending channel that has been in place since mid-March. The RSI is over 50 and has been steadily increasing while holding above a rising trend line indicating upside momentum. A bounce off of the lower trend line is possible before re-testing the $66.00 level and possibly hitting the $73.00 resistance level in extension. If price cannot hold inside the channel and falls below the lower trend line, we could see a retracement $54.00 support level.               

Source: GAIN Capital, TradingView

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