Loading...
•
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.
ESCO Technologies
ESCO Technologies
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.
- Economic disruptions.