The 10-second takeaway
For the quarter ended Sep. 30 (Q4), ESCO Technologies met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share grew.
Margins increased across the board.
ESCO Technologies logged revenue of $192.2 million. The nine analysts polled by S&P Capital IQ anticipated sales of $191.7 million on the same basis. GAAP reported sales were 0.8% higher than the prior-year quarter's $190.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.65. The seven earnings estimates compiled by S&P Capital IQ forecast $0.63 per share. GAAP EPS of $0.65 for Q4 were 14% higher than the prior-year quarter's $0.57 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.1%, 370 basis points better than the prior-year quarter. Operating margin was 14.6%, 600 basis points better than the prior-year quarter. Net margin was 9.2%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $163.2 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $775.2 million. The average EPS estimate is $2.40.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 70 members out of 78 rating the stock outperform, and eight members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give ESCO Technologies a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ESCO Technologies is outperform, with an average price target of $40.70.
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