ESCO Technologies Meets on the Top Line, Misses Where It Counts
ESCO Technologies (NYS: ESE) reported earnings on May 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q2), ESCO Technologies met expectations on revenues and missed estimates on earnings per share.
Compared with the prior-year quarter, revenue improved and GAAP earnings per share dropped significantly.
Margins shrank across the board.
ESCO Technologies notched revenue of $173.9 million. The 11 analysts polled by S&P Capital IQ foresaw revenue of $173.6 million on the same basis. GAAP reported sales were 4.3% higher than the prior-year quarter's $166.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.41. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.43 per share. GAAP EPS of $0.38 for Q2 were 22% lower than the prior-year quarter's $0.49 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.1%, 180 basis points worse than the prior-year quarter. Operating margin was 9.8%, 320 basis points worse than the prior-year quarter. Net margin was 5.9%, 200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $187.8 million. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $721.8 million. The average EPS estimate is $2.08.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 70 members out of 78 rating the stock outperform, and eight members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give ESCO Technologies a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ESCO Technologies is outperform, with an average price target of $40.10.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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