The 10-second takeaway
For the quarter ended Dec. 31 (Q1), ESCO Technologies missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share contracted significantly.
Margins contracted across the board.
ESCO Technologies logged revenue of $145.3 million. The eight analysts polled by S&P Capital IQ foresaw revenue of $149.0 million on the same basis. GAAP reported sales were 5.0% lower than the prior-year quarter's $152.9 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 $0.05. The seven earnings estimates compiled by S&P Capital IQ averaged $0.09 per share. GAAP EPS of $0.01 for Q1 were 95% lower than the prior-year quarter's $0.19 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 35.3%, 410 basis points worse than the prior-year quarter. Operating margin was 0.6%, 490 basis points worse than the prior-year quarter. Net margin was 0.2%, 320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $187.3 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $764.8 million. The average EPS estimate is $2.40.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 71 members out of 79 rating the stock outperform, and eight members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 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 $39.00.
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