NYSE$ESE

ESCO Technologies Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

ESCO Technologies reported Q3 2021 results with GAAP EPS of $0.57 and Adjusted EPS of $0.67.

ESCO Technologies reported a 5% increase in sales and a significant rise in entered orders, up 29% year-over-year to over $200 million. The company's performance was driven by growth in commercial and military aerospace, Navy, space, electric utility, and renewable energy sectors. Despite challenges at Westland Technologies, ESCO maintained solid profitability and cash flow.

  • Q3 GAAP EPS was $0.57, and Adjusted EPS was $0.67.
  • Q3 orders exceeded $200 million, resulting in a book-to-bill ratio of 1.12.
  • Sales increased by 5% year-over-year, with all three business segments posting higher sales.
  • The company is focused on optimizing cost structure, improving working capital, and investing in profitable growth.

Headline financials

Total Revenue

$181M

Previous: $173M+5.1%
EPS (adj)

$0.67

Previous: $0.76-11.8%
Free Cash Flow

$14.9M

Previous: -$9.6M+255.2%
Net Income

$14.9M

Previous: $18.7M-20.2%
Operating Income

-$162M

Previous: -$141M-15.3%
Gross Profit

$67.8M

Previous: $65M+4.3%
Cash & Equivalents

$78.4M

Previous: $105M-25.2%
Total Assets

$1.41B

Previous: $1.44B-2.5%
Stock-Based Comp

$2.64M

Previous: $1.29M+105.0%

Revenue & EPS history

ESCO Technologies · Revenue · Quarterly

$181M

Q3 2021+5.1%vs Q3 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

ESCO Technologies expects solid Q4 growth in sales, Adjusted EBITDA, and Adjusted EPS compared to Q3 2021. Q4 Adjusted EPS is expected to be in the range of $0.73 to $0.78 per share, excluding the impact from recent acquisitions.

Tailwinds

  • Expectation for solid Q4 growth in sales compared to Q3 2021.
  • Expectation for solid Q4 growth in Adjusted EBITDA compared to Q3 2021.
  • Expectation for solid Q4 growth in Adjusted EPS compared to Q3 2021.
  • Q4 Adjusted EPS to be in the range of $0.73 to $0.78 per share.
  • Acquisitions are expected to provide an additional boost to core growth in 2022.

Headwinds

  • Recovery of commercial aerospace is still in the early stages.
  • Level of activity is somewhat lower than anticipated in the commercial aerospace market.
  • Level of activity is somewhat lower than anticipated in the utility markets.
  • Uncertainty as to the timing and pace of the recovery in the commercial aerospace market.
  • Uncertainty as to the timing and pace of the recovery in the electric utility markets.

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 2021

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro