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Mar 31, 2022
ESCO Technologies Q2 2022 Earnings Report
Reported strong orders, sales, and earnings growth in Q2.
Key Takeaways
ESCO Technologies reported a strong second quarter with a 23.5% increase in sales to $205 million and a book-to-bill ratio of 1.15x, driven by increased activity from North American utility customers and a recovery in commercial aerospace revenue. The company achieved record Q2 revenue and a 16% growth in Adjusted EPS, despite facing challenges from supply chain issues and inflation. The company expects revenue and earnings to be more second half weighted.
Q2 GAAP EPS was $0.64 and Adjusted EPS was $0.65.
Q2 Sales increased 23.5% to $205 million.
Q2 Orders totaled $236 million, resulting in a book-to-bill ratio of 1.15x.
Year-to-date orders are up 38% over the prior year, leading to a record backlog.
Forward Guidance
Management's expectations for 2022 remain consistent with the details outlined in our November 18, 2021 release. Expects Q3 Adjusted EPS in the range of $0.84 to $0.91 per share.
Positive Outlook
- 2022 guidance represents meaningful growth in sales, Adjusted EBIT, and Adjusted EBITDA across each of the Company’s business segments.
- Year-to-date results have generally matched expectations.
- Solid backlog driving revenue growth.
- Improving margins.
- On track to deliver stated goal for the year of adjusted earnings per share in the range of $3.10 to $3.20.
Challenges Ahead
- Revenue and earnings will be more second half weighted and reflect a significant ramp compared to the first half of the year.
- Supply chain issues.
- Wage inflation.
- Material cost inflation.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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