NYSE$ESE

ESCO Technologies Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

ESCO Technologies' Q3 2024 results were released, featuring a 46% increase in orders and a 5% increase in sales.

ESCO Technologies reported a solid Q3 2024, with orders increasing by 46% to $312 million and sales increasing by 5% to $261 million. GAAP EPS increased by 5% to $1.13, and Adjusted EPS increased by 6% to $1.16.

  • Orders increased 46% to $312 million, resulting in a book-to-bill ratio of 1.20x.
  • Sales increased 5% to $261 million.
  • GAAP EPS increased 5% to $1.13.
  • Adjusted EPS increased 6% to $1.16.

Headline financials

Total Revenue

$261M

Previous: $249M+4.8%
EPS

$1.13

Previous: $1.09+3.7%
Entered Orders

$255M

No prior period
Capital Expenditures

-$11.3M

No prior period
Free Cash Flow

$29.2M

Previous: $27.9M+4.6%
Net Income

$29.2M

Previous: $27.9M+4.6%
Operating Income

-$221M

Previous: -$211M-4.5%
Gross Profit

$103M

Previous: $101M+1.8%
Cash & Equivalents

$63M

Previous: $56.1M+12.5%
Total Assets

$1.81B

Previous: $1.7B+6.3%
Stock-Based Comp

$2.23M

Previous: $1.7M+31.0%

Revenue & EPS history

ESCO Technologies · Revenue · Quarterly

$261M

Q3 2024+4.8%vs Q3 2023
Beat estimate in 10 of 15 quarters(67%)
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 Q4 Adjusted EPS in the range of $1.38 to $1.48 (10 to 18 percent growth), leading to full year guidance in the range of $4.10 to $4.20 (11 to 14 percent growth). Full year sales are expected to be in the range of $1.02 to $1.03 billion (7 to 8 percent annual growth).

Tailwinds

  • Q4 Adjusted EPS is expected to grow by 10-18%.
  • Full year Adjusted EPS is expected to grow by 11-14%.
  • Full year sales are expected to grow by 7-8%.
  • ESCO anticipates its third consecutive year of double-digit earnings growth.
  • Acquisition of Signature Management & Power (SM&P) business of Ultra Maritime is expected to close in Q1 fiscal 2025.

Headwinds

  • VACCO Space programs could experience further profitability erosion of $5 to $7 million ($0.15 - $0.21) in Q4 2024.
  • The Company is undertaking a process to review strategic alternatives for the Space business at VACCO, which could include a sale of the business.
  • The timing and outcome of the strategic alternatives review for the Space business at VACCO are uncertain.
  • The Company's actual results in the future may differ materially from those projected in the forward-looking statements due to risks and uncertainties.
  • Disruptions in manufacturing or delivery arrangements due to shortages or unavailability of materials or components or supply chain disruptions.

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 2024

Historical avgQ3 2024

+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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