A month has gone by since the last earnings report for Enersys ENS. Shares have lost about 8.9% in that time frame, underperforming the market.

Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

EnerSys Q4 Earnings & Revenues Beat, Guidance Slashed

Industrial battery manufacturer, EnerSys kept its winning streak alive for the fifth consecutive quarter. The company’s fiscal fourth-quarter 2017 adjusted earnings came in at $1.28 a share, beating the Zacks Consensus Estimate of $1.21 by 5.8%.

The bottom line fared even better on a year-over-year comparison, improving 24.3% from the prior-year figure of $1.03. The number also steered past the projected range of $1.19–$1.23.

For fiscal 2017, the company’s adjusted earnings per share of $4.75 were up 20.9% year over year.

EnerSys’ diligent restructuring initiatives have produced tangible improvements in short-term productivity, which drove bottom-line growth. In addition, decent top-line performance proved conducive to earnings growth.

Inside the Headlines

During the quarter, net sales were up 3% to $626.8 million year over year. The figure also trumped the Zacks Consensus Estimate of $619 million. The year-over-year increase was influenced by robust organic volume and higher pricing of products. In addition, revenues from acquisitions also supplemented growth.

For full-year 2017, the company’s total sales were $2,367.1 million, up 2.2% from fiscal 2016. While higher sales in Asia (up 7.5%) and America (up 4.4%) drove the top line, this was largely offset by poor sales in the EMEA region (down 3.1%).

In terms of geography, both the Asian and EMEA regions recorded a year-over-year decline. While the Asian region net sales dipped 16.9%, EMEA net sales were down by 2.5%, both on a year-over-year basis. However, the Americas witnessed a modest year-over-year sales improvement of 10.2%, offsetting some of this decline. While currency translation woes and organic sales decline marred total sales in both the EMEA region and Asia, positive contributions from acquisition and organic growth drove the same for the Americas.

EnerSys’ operating earnings for the quarter totaled $51.9 million. Gross margin expanded 40 basis points to 26.6%. Improvements in gross margins came on the back of improved favorable product mix and benefits from restructuring programs.