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Sep 30, 2020
ESCO Technologies Q4 2020 Earnings Report
Reported operating results for the fourth quarter and fiscal year ended September 30, 2020.
Key Takeaways
ESCO Technologies Inc. reported Q4 2020 results, with GAAP EPS of ($0.81) per share and Adjusted EPS of $0.90 per share. The company's 2020 sales were $733 million with an Adjusted EBITDA of $137 million and Adjusted EPS of $2.76 per share.
Q4 2020 GAAP EPS was ($0.81) per share, including the impact of 2020 Discrete Items.
Q4 2020 Adjusted EPS was $0.90 per share, excluding the impact of 2020 Discrete Items.
Q4 2020 Adjusted EBITDA was $42 million, compared to $48 million in Q4 2019.
The company completed its Pension Plan Termination in Q4 2020, resulting in a $41 million non-cash charge.
ESCO Technologies
ESCO Technologies
Forward Guidance
Management will offer “directional” guidance for 2021, by stating they are seeing tangible signs of recovery in the second half of fiscal 2021 that point to a solid outlook for the back half of the year. Management’s current expectations for the 2021 outlook show growth in Sales, Adjusted EBITDA, and Adjusted EPS compared to 2020, with Adjusted EBITDA and Adjusted EPS reasonably consistent with 2019.
Positive Outlook
- Tangible signs of recovery in the second half of fiscal 2021.
- Solid outlook for the back half of the year.
- Expected growth in Sales, Adjusted EBITDA, and Adjusted EPS compared to 2020.
- Adjusted EBITDA and Adjusted EPS reasonably consistent with 2019.
- Commercial aerospace and utility end-markets are seeing some degree of customer stabilization, as well as notable pockets of recovery.
Challenges Ahead
- Uncertainty as to the timing and pace of the recovery in commercial aerospace and utility end-markets.
- Difficult to predict how 2021 will be affected using normal forecasting methodologies.
- Company will continue the suspension of forward-looking guidance.
- The first half of 2021 will be a slightly lower comparison to 2020’s first half.
- Customer spending softness to continue for the next few quarters before returning to normal levels.