NYSE$ESE

ESCO Technologies Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported Q3 2020 results with GAAP EPS of $0.72 and Adjusted EPS of $0.76.

ESCO Technologies reported solid Q3 2020 results, demonstrating resilience through diversity and effective cost management, achieving Adjusted EBITDA consistent with Q3 2019 despite sales decrease.

  • Q3 2020 GAAP EPS was $0.72, including $0.04 per share of COVID-19 related costs; Adjusted EPS was $0.76.
  • Q3 2020 Adjusted EBITDA was $35 million, consistent with Q3 2019.
  • Test segment showed strength with a 9% sales increase and nearly 16% EBIT margin.
  • Ending backlog remains strong at $551 million, a 22% increase from the start of the year.

Headline financials

Total Revenue

$173M

Previous: $200M-13.6%
EPS (adj)

$0.76

Previous: $0.81-6.2%
Ending Backlog

$551M

No prior period
Capital Expenditures

-$28.3M

Previous: -$26.5M-6.9%
Free Cash Flow

-$9.6M

Previous: -$6.39M-50.3%
Net Income

$18.7M

Previous: $20.1M-6.9%
Operating Income

-$141M

Previous: -$164M+14.0%
Gross Profit

$65M

Previous: $77.6M-16.3%
Cash & Equivalents

$105M

Previous: $39M+168.9%
Total Assets

$1.44B

Previous: $1.33B+8.9%
Stock-Based Comp

$1.29M

Previous: $1.32M-2.5%

Revenue & EPS history

ESCO Technologies · Revenue · Quarterly

$173M

Q3 2020-13.6%vs Q3 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

Given the continued uncertainty regarding the extent and duration of these economic circumstances, it is difficult to predict how our future operations will be affected using our normal forecasting methodologies, therefore, the Company will continue the suspension of fiscal year 2020 guidance.

Tailwinds

  • Defense portion of A&D expected to remain strong.
  • Test segment expected to remain relatively solid.
  • Doble's order pipeline of new business remains robust.
  • NRG's end markets are recovering as investments in renewable energy have been increasing in both wind and solar.
  • Doble is using this temporary pause in the market to accelerate development of several new products and software solutions.

Headwinds

  • Softness in commercial aerospace deliveries expected to continue for the balance of the year.
  • USG sales remained soft in Q3 2020 as utility customers continued deferring purchase orders and maintenance-related projects.
  • Doble's service business is largely on hold until these personal safety risks can be reduced.
  • Doble's customer spending softness expected to continue for the next few quarters before returning to normal levels.
  • Continued uncertainty regarding the extent and duration of these economic circumstances.

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 Q3 2020

Historical avgQ3 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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