ESCO Technologies Earnings: Here’s Why Shares are Down Now

ESCO Technologies Inc. (NYSE:ESE) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.38%.

ESCO Technologies Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 35.29% to $0.33 in the quarter versus EPS of $0.51 in the year-earlier quarter.

Revenue: Decreased 30.42% to $117.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: ESCO Technologies Inc. reported adjusted EPS income of $0.33 per share. By that measure, the company missed the mean analyst estimate of $0.55. It missed the average revenue estimate of $188.63 million.

Quoting Management: Vic Richey, ESCO Chairman and Chief Executive Officer, commented, “I am very pleased with the level of interest we`ve seen throughout the initial phase of this process. The number of interested parties is encouraging and includes quality strategic players and leading private equity firms.
“While the Aclara process is ongoing, we continue to execute on our plan to position ESCO for long-term earnings growth and value creation, both organically and through acquisitions within our core business segments. The pending divestiture reflects our commitment to enhance shareholder value, as we believe now is the prudent time to explore our alternatives with respect to Aclara. This process will help ensure ESCO achieves its full earnings potential while creating additional shareholder value.”

Key Stats (on next page)…

Revenue decreased 29.05% from $166.18 million in the previous quarter. EPS increased 17.86% from $0.28 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.79 and has not changed. For the current year, the average estimate has moved down from a profit of $1.67 to a profit of $1.66 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)