NYSE$ESE

ESCO Technologies Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Second Quarter Fiscal 2021 results announced with GAAP EPS of $0.62 and Adjusted EPS of $0.59, exceeding consensus estimates.

ESCO Technologies Inc. reported solid Q2 2021 results, managing the impact of COVID-19 through diversity across end-markets and disciplined working capital management. Adjusted EPS was $0.59 per share, and the company saw increased cash generation and liquidity.

  • Q2 2021 GAAP EPS was $0.62 per share, including discrete items, while Adjusted EPS was $0.59 per share.
  • Adjusted EBITDA was $31 million in Q2 2021, consistent with Q2 2020.
  • A&D segment led Q2 2021 success, exceeding internal expectations with an Adjusted EBIT margin of nearly 22 percent.
  • The Test segment's sales increased by over 5 percent with an EBIT margin of 13 percent.

Headline financials

Total Revenue

$167M

Previous: $180M-7.7%
EPS (adj)

$0.59

Previous: $0.68-13.2%
Free Cash Flow

$16.3M

Previous: -$3.39M+581.4%
Net Income

$16.3M

Previous: $17.8M-8.5%
Operating Income

-$145M

Previous: -$151M+3.6%
Gross Profit

$63.5M

Previous: $67.3M-5.5%
Cash & Equivalents

$45.7M

Previous: $100M-54.4%
Total Assets

$1.36B

Previous: $1.44B-5.8%
Stock-Based Comp

$1.38M

Previous: $1.45M-5.0%

Revenue & EPS history

ESCO Technologies · Revenue · Quarterly

$167M

Q2 2021-7.7%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

The company anticipates a solid outlook for the back half of 2021, with growth in Sales, Adjusted EBITDA, Adjusted EPS, and cash flow from operating activities compared to 2020. Adjusted EBITDA is expected to be reasonably consistent with 2019, pre-COVID.

Tailwinds

  • Tangible signs of recovery point to a solid outlook for the back half of the year.
  • Second half of 2021 is expected to compare favorably to the second half of 2020.
  • Growth in Sales is expected.
  • Growth in Adjusted EBITDA is expected.
  • Growth in Adjusted EPS is expected.

Headwinds

  • Uncertainty remains regarding the timing and pace of recovery in commercial aerospace and utility end-markets.
  • The wide distribution of viable COVID-19 vaccines is anticipated to benefit and accelerate the recovery of commercial air travel and utility spending, but Management has determined that it is advisable to wait before resuming specific guidance.
  • Business disruptions related to the pandemic began to affect the Company’s operations and continued throughout the balance of the year.
  • 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.

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 Q2 2021

Historical avgQ2 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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