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Jun 30, 2021
ESCO Technologies Q3 2021 Earnings Report
ESCO Technologies reported Q3 2021 results with GAAP EPS of $0.57 and Adjusted EPS of $0.67.
Key Takeaways
ESCO Technologies reported a 5% increase in sales and a significant rise in entered orders, up 29% year-over-year to over $200 million. The company's performance was driven by growth in commercial and military aerospace, Navy, space, electric utility, and renewable energy sectors. Despite challenges at Westland Technologies, ESCO maintained solid profitability and cash flow.
Q3 GAAP EPS was $0.57, and Adjusted EPS was $0.67.
Q3 orders exceeded $200 million, resulting in a book-to-bill ratio of 1.12.
Sales increased by 5% year-over-year, with all three business segments posting higher sales.
The company is focused on optimizing cost structure, improving working capital, and investing in profitable growth.
Forward Guidance
ESCO Technologies expects solid Q4 growth in sales, Adjusted EBITDA, and Adjusted EPS compared to Q3 2021. Q4 Adjusted EPS is expected to be in the range of $0.73 to $0.78 per share, excluding the impact from recent acquisitions.
Positive Outlook
- Expectation for solid Q4 growth in sales compared to Q3 2021.
- Expectation for solid Q4 growth in Adjusted EBITDA compared to Q3 2021.
- Expectation for solid Q4 growth in Adjusted EPS compared to Q3 2021.
- Q4 Adjusted EPS to be in the range of $0.73 to $0.78 per share.
- Acquisitions are expected to provide an additional boost to core growth in 2022.
Challenges Ahead
- Recovery of commercial aerospace is still in the early stages.
- Level of activity is somewhat lower than anticipated in the commercial aerospace market.
- Level of activity is somewhat lower than anticipated in the utility markets.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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