NYSE$ESE

ESCO Technologies Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Announced first quarter fiscal 2020 results, with GAAP EPS of $3.32 and adjusted EPS of $0.43.

ESCO Technologies reported a strong first quarter, exceeding adjusted EPS guidance due to solid performance in the Test and A&D segments, while completing the sale of the Technical Packaging segment.

  • Completed the sale of the Technical Packaging segment for approximately $190 million, recording a significant gain on the sale.
  • Adjusted EPS of $0.43 exceeded the previously communicated guidance of $0.35 to $0.40 per share.
  • Adjusted EBITDA increased by 5 percent to $28.0 million, driven by strong performance in the Test and A&D segments.
  • Booked $220 million of new business, growing backlog by 11 percent to $500 million.

Headline financials

Total Revenue

$172M

Previous: $183M-6.0%
EPS (adj)

$0.43

Previous: $0.47-8.5%
Entered Orders

$220M

No prior period
Ending Backlog

$500M

No prior period
Capital Expenditures

-$12.6M

Previous: $4.78M-364.8%
Free Cash Flow

$74.1M

Previous: $17.3M+328.1%
Net Income

$86.8M

Previous: $17.3M+401.1%
Operating Income

-$147M

Previous: $34.1M-530.4%
Gross Profit

$65M

Previous: $63.7M+2.1%
Cash & Equivalents

$96.7M

Previous: $36.6M+164.0%
Total Assets

$1.43B

Previous: $1.27B+12.9%
Stock-Based Comp

$1.45M

Previous: $1.37M+5.3%

Revenue & EPS history

ESCO Technologies · Revenue · Quarterly

$172M

Q1 2020-6%vs Q1 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

ESCO Technologies · $150M total across 2 segments · Q2 2023

  • Aerospace & Defense
    $98.9M
  • Test & Measurement
    $51.2M

Forward guidance

Management expects 2020 revenues and Adjusted EPS to be more back half weighted, with Q2 2020 Adjusted EPS expected to be in the range of $0.70 to $0.75 per share.

Tailwinds

  • Meaningful net sales and Adjusted EBITDA growth across each of the Company’s business segments.
  • Growth rates in 2020 and beyond will generally exceed the broader industrial market.
  • Growth is expected to be enhanced by additional M&A contributions during the year.
  • Management expects Q2 2020 Adjusted EPS to be in the range of $0.70 to $0.75 per share.
  • Globe continues to deliver results above expectations.

Headwinds

  • The timing of quarterly sales and earnings throughout the year, coupled with the discrete charges incurred within the respective quarters will impact quarterly comparability.
  • The recent news surrounding the suspended production of the 737MAX creates some headwind for us over the next few months until production resumes.
  • Pension plan liability
  • Equity market risk
  • Interest rate volatility

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.4%

Avg return

Earnings day

+1.9%

Avg return

5 days after

+1.0%

Avg return

30 days after

50%

34 / 68 earnings

Positive

+19.7%

Q1 2025

Best reaction

-12.7%

Q3 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-1.0%-9.4%-11.7%
Q1 2026+6.2%+18.8%+11.8%
Q4 2025+6.4%+1.3%-5.4%
Q2 2025+5.7%+13.4%+12.6%
Q1 2025+19.7%+25.0%+21.9%
Q4 2024+0.7%+2.1%-2.3%
Q3 2024+3.0%+2.8%+1.9%
Q2 2024-4.1%-4.1%-3.1%
Q1 2024-4.8%-5.0%-2.2%
Q4 2023+0.3%-0.1%+8.8%
Q3 2023+2.5%+1.6%-1.1%
Q2 2023+1.1%+0.7%+0.2%
Q1 2023-7.5%-5.0%-12.3%
Q4 2022+2.9%+6.2%-2.5%
Q3 2022+1.5%+13.7%+3.2%
Q2 2022+6.1%+4.2%+9.1%
Q1 2022-3.6%-8.6%-7.3%
Q4 2021+0.5%-2.4%-6.2%
Q3 2021+1.1%-4.1%-9.3%
Q2 2021-0.5%-0.0%-15.9%
Q1 2021+2.6%+3.7%+8.3%
Q4 2020-1.1%+3.7%+0.7%
Q3 2020+1.3%-0.0%-4.4%
Q2 2020+1.8%+6.0%+20.7%
Q1 2020+7.2%+5.8%-8.3%
Q4 2019+2.0%+0.5%+4.6%
Q3 2019-4.2%-4.6%-3.6%
Q2 2019-4.3%-3.0%-3.7%
Q1 2019+1.2%+2.1%+2.4%
Q4 2018+10.8%+9.7%+7.8%
Q3 2018+6.8%+6.7%+11.4%
Q2 2018+2.1%-1.0%+4.0%
Q1 2018+6.5%+1.1%+1.2%
Q4 2017-1.2%+3.5%+4.7%
Q3 2017-12.7%-16.0%-10.9%
Q2 2017-2.2%-1.8%+0.6%
Q1 2017-7.7%-4.6%-6.4%
Q4 2016+5.6%+9.5%+12.7%
Q3 2016-0.1%+0.9%+5.6%
Q2 2016-1.1%
Q1 2016-2.2%
Q4 2015+0.3%
Q3 2015-2.6%
Q2 2015+0.5%
Q1 2015-2.5%
Q4 2014-2.1%
Q3 2014+0.9%
Q2 2014+3.0%
Q1 2014+4.9%
Q4 2013-2.0%
Q3 2013-4.1%
Q2 2013-8.3%
Q1 2013-0.5%
Q4 2012-0.7%
Q3 2012+0.6%
Q2 2012+1.0%
Q1 2012+5.9%
Q4 2011+3.1%
Q3 2011-3.3%
Q2 2011-1.1%
Q1 2010-2.0%
Q1 2011-0.4%
Q4 2010-2.1%
Q2 2010-2.1%
Q4 2008-2.1%
Q4 2009-2.3%
Q3 2009-2.3%
Q3 2010-2.3%

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