NYSE$ESE

ESCO Technologies Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported GAAP EPS of $0.52 and Adjusted EPS of $0.55, exceeding consensus estimates, and achieved record Q1 cash flow.

ESCO Technologies Inc. reported strong Q1 2021 results, demonstrating resilience through diversity and effective cost management. The company's performance was driven by USG's exceeding expectations, while managing COVID-19 impacts in commercial aerospace and utility sectors. Record cash flow was generated, debt was reduced, and investments in new products continued.

  • GAAP EPS was $0.52, and Adjusted EPS was $0.55, surpassing consensus estimates.
  • Record Q1 cash flow from operations was achieved, with a leverage ratio of 0.38x and liquidity of $740 million.
  • USG segment substantially exceeded internal expectations with nearly 25% Adjusted EBIT margin.
  • The company continues to pursue acquisitions and expand internal investments in new product development.

Headline financials

Total Revenue

$163M

Previous: $172M-5.1%
EPS (adj)

$0.55

Previous: $0.43+27.9%
Free Cash Flow

$13.7M

Previous: $74.1M-81.5%
Net Income

$13.7M

Previous: $86.8M-84.2%
Operating Income

-$145M

Previous: -$147M+1.0%
Gross Profit

$64.2M

Previous: $65M-1.3%
Cash & Equivalents

$57.4M

Previous: $96.7M-40.7%
Total Assets

$1.38B

Previous: $1.43B-3.4%
Stock-Based Comp

$1.37M

Previous: $1.45M-5.4%

Revenue & EPS history

ESCO Technologies · Revenue · Quarterly

$163M

Q1 2021-5.1%vs Q1 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

ESCO Technologies · $82.1M total across 2 segments · Q1 2021

  • Test & Measurement
    $42.5M
  • Utility Solutions Group
    $39.7M

Forward guidance

The company anticipates tangible signs of recovery in the second half of fiscal 2021, pointing to a solid outlook for the back half of the year. Management expects growth in Sales, Adjusted EBITDA, and Adjusted EPS compared to 2020, with Adjusted EBITDA and Adjusted EPS reasonably consistent with 2019.

Tailwinds

  • Tangible signs of recovery in the second half of fiscal 2021.
  • Expected growth in Sales, Adjusted EBITDA and Adjusted EPS compared to 2020.
  • Adjusted EBITDA and Adjusted EPS reasonably consistent with 2019.
  • Commercial aerospace and utility end-markets have seen some degree of customer stabilization.
  • Notable pockets of recovery are visible.

Headwinds

  • Uncertainty as to the timing and pace of recovery in commercial aerospace and utility areas.
  • The wide distribution of viable COVID-19 vaccines is anticipated to benefit and accelerate the recovery of commercial air travel and utility spending with customers resuming normal testing protocols and equipment purchases, but Management has determined that it is advisable to wait at least another 90 days before resuming specific guidance.
  • It is difficult to predict how the balance of 2021 will be affected using normal forecasting methodologies.
  • The company will continue its suspension of forward-looking guidance.
  • First half of 2021 is projected to be a slightly lower comparison to 2020’s first half.

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 2021

Historical avgQ1 2021

+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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