ESCO Technologies's Upcoming Earnings: What You Need To Know

Checking expectations

ESCO Technologies (NYSE: ESE) is expected to report Q2 earnings on May 7. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict ESCO Technologies's revenues will shrink -2.0% and EPS will wither -12.2%.

The average estimate for revenue is $170.5 million. On the bottom line, the average EPS estimate is $0.36.

Revenue details
Last quarter, ESCO Technologies chalked up revenue of $145.3 million. 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 details
Last quarter, non-GAAP EPS came in at $0.05. 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.

Recent performance
For the preceding quarter, gross margin was 35.3%, 410 basis points worse than the prior-year quarter. Operating margin was 0.5%, 500 basis points worse than the prior-year quarter. Net margin was 0.2%, 320 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $737.3 million. The average EPS estimate is $2.21.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 68 members out of 76 rating the stock outperform, and eight members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 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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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. The Motley Fool has no position in any of the stocks mentioned. 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.

Stocks Mentioned

ESCO Technologies

ESE

$90.13 (1.65%) $1.46

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.