The 10-second takeaway
For the quarter ended March 31 (Q2), ESCO Technologies met expectations on revenues and missed estimates on earnings per share.
Compared with the prior-year quarter, revenue improved and GAAP earnings per share dropped significantly.
Margins shrank across the board.
ESCO Technologies notched revenue of $173.9 million. The 11 analysts polled by S&P Capital IQ foresaw revenue of $173.6 million on the same basis. GAAP reported sales were 4.3% higher than the prior-year quarter's $166.7 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 $0.41. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.43 per share. GAAP EPS of $0.38 for Q2 were 22% lower than the prior-year quarter's $0.49 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%, 180 basis points worse than the prior-year quarter. Operating margin was 9.8%, 320 basis points worse than the prior-year quarter. Net margin was 5.9%, 200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $187.8 million. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $721.8 million. The average EPS estimate is $2.08.
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 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 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 $40.10.
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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. He is the 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 don't 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.