The 10-second takeaway
For the quarter ended March 31 (Q2), ESCO Technologies missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Margins dropped across the board.
ESCO Technologies booked revenue of $166.2 million. The nine analysts polled by S&P Capital IQ wanted to see a top line of $170.5 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.28. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.33 per share. Non-GAAP EPS of $0.28 for Q2 were 32% lower than the prior-year quarter's $0.41 per share. GAAP EPS of $0.06 for Q2 were 84% lower than the prior-year quarter's $0.38 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 33.4%, 570 basis points worse than the prior-year quarter. Operating margin was 2.5%, 710 basis points worse than the prior-year quarter. Net margin was 0.9%, 500 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $200.1 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $736.6 million. The average EPS estimate is $1.60.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 67 members out of 75 rating the stock outperform, and eight members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 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 $45.71.
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