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Jun 30, 2020
ESCO Technologies Q3 2020 Earnings Report
Reported Q3 2020 results with GAAP EPS of $0.72 and Adjusted EPS of $0.76.
Key Takeaways
ESCO Technologies reported solid Q3 2020 results, demonstrating resilience through diversity and effective cost management, achieving Adjusted EBITDA consistent with Q3 2019 despite sales decrease.
Q3 2020 GAAP EPS was $0.72, including $0.04 per share of COVID-19 related costs; Adjusted EPS was $0.76.
Q3 2020 Adjusted EBITDA was $35 million, consistent with Q3 2019.
Test segment showed strength with a 9% sales increase and nearly 16% EBIT margin.
Ending backlog remains strong at $551 million, a 22% increase from the start of the year.
Forward Guidance
Given the continued uncertainty regarding the extent and duration of these economic circumstances, it is difficult to predict how our future operations will be affected using our normal forecasting methodologies, therefore, the Company will continue the suspension of fiscal year 2020 guidance.
Positive Outlook
- Defense portion of A&D expected to remain strong.
- Test segment expected to remain relatively solid.
- Doble's order pipeline of new business remains robust.
- NRG's end markets are recovering as investments in renewable energy have been increasing in both wind and solar.
- Doble is using this temporary pause in the market to accelerate development of several new products and software solutions.
Challenges Ahead
- Softness in commercial aerospace deliveries expected to continue for the balance of the year.
- USG sales remained soft in Q3 2020 as utility customers continued deferring purchase orders and maintenance-related projects.
- Doble's service business is largely on hold until these personal safety risks can be reduced.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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