The 10-second takeaway
For the quarter ended Dec. 31 (Q1), ESCO Technologies met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share shrank significantly.
Gross margins grew, operating margins shrank, net margins shrank.
ESCO Technologies notched revenue of $152.9 million. The 10 analysts polled by S&P Capital IQ predicted a top line of $151.5 million. GAAP sales were 4.4% lower than the prior-year quarter's $159.9 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 $0.19. The eight earnings estimates compiled by S&P Capital IQ forecast $0.27 per share. GAAP EPS of $0.19 for Q1 were 53% lower than the prior-year quarter's $0.40 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 39.4%, 40 basis points better than the prior-year quarter. Operating margin was 5.5%, 450 basis points worse than the prior-year quarter. Net margin was 3.4%, 340 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $172.3 million. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $721.3 million. The average EPS estimate is $2.14.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 69 members out of 77 rating the stock outperform, and nine members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give ESCO Technologies a green thumbs-up, and two 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 $39.10.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.