ESCO Technologies (NYSE:ESE) Posts Earnings Results, Beats Estimates By $0.08 EPS

ESCO Technologies (NYSE:ESE) released its quarterly earnings results on Thursday. The scientific and technical instruments company reported $2.20 EPS for the quarter, topping analysts’ consensus estimates of $2.12 by $0.08, FiscalAI reports. The firm had revenue of $339.03 million during the quarter, compared to analysts’ expectations of $341.40 million. ESCO Technologies had a net margin of 24.39% and a return on equity of 13.40%. The firm’s revenue for the quarter was up 14.4% compared to the same quarter last year. During the same period in the previous year, the company earned $1.60 EPS. ESCO Technologies updated its FY 2026 guidance to 8.300-8.400 EPS and its Q4 2026 guidance to 2.550-2.650 EPS.

Here are the key takeaways from ESCO Technologies’ conference call:

• Q3 results exceeded expectations, with 14% reported revenue growth, 8% organic growth, adjusted EBIT margins up 90 basis points to 22%, and adjusted EPS up 37.5% to $2.20.
• Strong orders across all three segments produced a 1.21 book-to-bill ratio and a record $1.54 billion backlog, supporting management’s confidence in continued growth.
• ESCO raised fiscal 2026 adjusted EPS guidance to $8.30-$8.40, representing 38%-39% growth, while operating cash flow increased to more than $193 million year to date.
• The Megger acquisition remains on track to close in the first quarter of fiscal 2027, with regulatory reviews progressing as expected and integration planning underway; management expects debt costs of approximately 6%.
• Utility Solutions margins declined 130 basis points, largely because NRG’s renewables business remains weak; management expects another year-over-year decline in the fourth quarter before a possible return to growth in fiscal 2027.

ESCO Technologies Stock Down 6.9%

Shares of ESE traded down $22.65 during midday trading on Friday, reaching $305.38. 434,228 shares of the stock were exchanged, compared to its average volume of 175,867. The company has a market capitalization of $7.91 billion, a P/E ratio of 25.15, a PEG ratio of 2.01 and a beta of 1.10. The company has a current ratio of 1.45, a quick ratio of 0.98 and a debt-to-equity ratio of 0.08. ESCO Technologies has a 52 week low of $174.92 and a 52 week high of $362.15. The company’s 50 day moving average is $324.18 and its two-hundred day moving average is $296.02.

ESCO Technologies Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Thursday, October 1st will be given a dividend of $0.08 per share. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $0.32 dividend on an annualized basis and a dividend yield of 0.1%. ESCO Technologies’s dividend payout ratio is presently 2.69%.

More ESCO Technologies News

Here are the key news stories impacting ESCO Technologies this week:

• Positive Sentiment: ESCO reported fiscal Q3 2026 adjusted earnings of $2.20 per share, exceeding the $2.12 consensus estimate and rising from $1.60 a year earlier. Revenue increased 14.4% year over year to $339.03 million. ESCO Technologies Q3 earnings report
• Positive Sentiment: Management raised fiscal 2026 EPS guidance to $8.30–$8.40, above the analyst consensus of $8.19. The company maintained revenue guidance of approximately $1.3 billion, indicating continued expectations for solid full-year growth. ESCO Technologies raises guidance
• Positive Sentiment: ESCO declared a quarterly dividend of $0.08 per share, payable October 15 to shareholders of record October 1. The payout provides a modest shareholder return, although the annualized yield is only about 0.1%.
• Neutral Sentiment: Fourth-quarter EPS guidance of $2.55–$2.65 brackets the $2.55 consensus estimate, offering little immediate indication of a major forecast revision. ESCO third-quarter results
• Negative Sentiment: Quarterly revenue of $339.03 million fell short of the $341.40 million analyst estimate. The modest miss may be weighing on the stock even though earnings exceeded expectations and full-year EPS guidance was raised.

Institutional Trading of ESCO Technologies

A number of hedge funds have recently added to or reduced their stakes in ESE. AQR Capital Management LLC raised its holdings in shares of ESCO Technologies by 60.5% in the 1st quarter. AQR Capital Management LLC now owns 7,683 shares of the scientific and technical instruments company’s stock valued at $1,223,000 after purchasing an additional 2,896 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of ESCO Technologies by 4.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,399 shares of the scientific and technical instruments company’s stock valued at $2,450,000 after purchasing an additional 664 shares in the last quarter. Dynamic Technology Lab Private Ltd bought a new position in shares of ESCO Technologies during the first quarter valued at approximately $228,000. United Services Automobile Association purchased a new position in ESCO Technologies during the first quarter valued at approximately $261,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in ESCO Technologies by 19.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 82,500 shares of the scientific and technical instruments company’s stock valued at $13,127,000 after buying an additional 13,648 shares during the period. 95.70% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several brokerages have issued reports on ESE. JPMorgan Chase & Co. assumed coverage on shares of ESCO Technologies in a research note on Monday, June 15th. They issued an “overweight” rating and a $420.00 price objective for the company. Wall Street Zen downgraded ESCO Technologies from a “buy” rating to a “hold” rating in a report on Saturday, May 9th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $400.00 price target on shares of ESCO Technologies in a research note on Friday, April 17th. Finally, Weiss Ratings raised ESCO Technologies from a “buy (a-)” rating to a “buy (a)” rating in a research report on Tuesday, July 21st. Two investment analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Buy” and a consensus target price of $410.00.

ESCO Technologies Company Profile

ESCO Technologies Inc is a diversified manufacturer of engineered products and systems designed to meet customers’ critical performance requirements in the test, measurement, control, and filtration of data, fluids, and gases. The company serves a wide range of end markets, including commercial aerospace, defense, industrial, medical, and communication network sectors. ESCO’s solutions are tailored to environments where reliability, precision and regulatory compliance are paramount.

Operating through multiple business segments, ESCO Technologies delivers test and measurement instruments such as RF and microwave components, signal distribution systems, and integrated test enclosures that support defense and aerospace programs.