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Mar 31, 2021
ESCO Technologies Q2 2021 Earnings Report
Second Quarter Fiscal 2021 results announced with GAAP EPS of $0.62 and Adjusted EPS of $0.59, exceeding consensus estimates.
Key Takeaways
ESCO Technologies Inc. reported solid Q2 2021 results, managing the impact of COVID-19 through diversity across end-markets and disciplined working capital management. Adjusted EPS was $0.59 per share, and the company saw increased cash generation and liquidity.
Q2 2021 GAAP EPS was $0.62 per share, including discrete items, while Adjusted EPS was $0.59 per share.
Adjusted EBITDA was $31 million in Q2 2021, consistent with Q2 2020.
A&D segment led Q2 2021 success, exceeding internal expectations with an Adjusted EBIT margin of nearly 22 percent.
The Test segment's sales increased by over 5 percent with an EBIT margin of 13 percent.
ESCO Technologies
ESCO Technologies
Forward Guidance
The company anticipates a solid outlook for the back half of 2021, with growth in Sales, Adjusted EBITDA, Adjusted EPS, and cash flow from operating activities compared to 2020. Adjusted EBITDA is expected to be reasonably consistent with 2019, pre-COVID.
Positive Outlook
- Tangible signs of recovery point to a solid outlook for the back half of the year.
- Second half of 2021 is expected to compare favorably to the second half of 2020.
- Growth in Sales is expected.
- Growth in Adjusted EBITDA is expected.
- Growth in Adjusted EPS is expected.
Challenges Ahead
- Uncertainty remains regarding the timing and pace of recovery in commercial aerospace and utility end-markets.
- The wide distribution of viable COVID-19 vaccines is anticipated to benefit and accelerate the recovery of commercial air travel and utility spending, but Management has determined that it is advisable to wait before resuming specific guidance.
- Business disruptions related to the pandemic began to affect the Company’s operations and continued throughout the balance of the year.
- It is difficult to predict how the balance of 2021 will be affected using normal forecasting methodologies.
- The company will continue its suspension of forward-looking guidance.