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Dec 31, 2019
ESCO Technologies Q1 2020 Earnings Report
Announced first quarter fiscal 2020 results, with GAAP EPS of $3.32 and adjusted EPS of $0.43.
Key Takeaways
ESCO Technologies reported a strong first quarter, exceeding adjusted EPS guidance due to solid performance in the Test and A&D segments, while completing the sale of the Technical Packaging segment.
Completed the sale of the Technical Packaging segment for approximately $190 million, recording a significant gain on the sale.
Adjusted EPS of $0.43 exceeded the previously communicated guidance of $0.35 to $0.40 per share.
Adjusted EBITDA increased by 5 percent to $28.0 million, driven by strong performance in the Test and A&D segments.
Booked $220 million of new business, growing backlog by 11 percent to $500 million.
Forward Guidance
Management expects 2020 revenues and Adjusted EPS to be more back half weighted, with Q2 2020 Adjusted EPS expected to be in the range of $0.70 to $0.75 per share.
Positive Outlook
- Meaningful net sales and Adjusted EBITDA growth across each of the Company’s business segments.
- Growth rates in 2020 and beyond will generally exceed the broader industrial market.
- Growth is expected to be enhanced by additional M&A contributions during the year.
- Management expects Q2 2020 Adjusted EPS to be in the range of $0.70 to $0.75 per share.
- Globe continues to deliver results above expectations.
Challenges Ahead
- The timing of quarterly sales and earnings throughout the year, coupled with the discrete charges incurred within the respective quarters will impact quarterly comparability.
- The recent news surrounding the suspended production of the 737MAX creates some headwind for us over the next few months until production resumes.
- Pension plan liability
Historical Earnings Impact
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Avg. Return Before/After Earnings
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