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

ESCO Technologies (NYSE:ESE) posted its quarterly earnings results on Thursday. The scientific and technical instruments company reported $2.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.12 by $0.08, FiscalAI reports. The firm had revenue of $339.03 million during the quarter, compared to analyst estimates of $341.40 million. ESCO Technologies had a return on equity of 13.40% and a net margin of 24.39%.ESCO Technologies’s quarterly revenue was up 14.4% compared to the same quarter last year. During the same quarter in the previous year, the firm 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 Performance

Shares of ESE stock traded down $22.65 during trading hours on Friday, reaching $305.38. The company had a trading volume of 434,228 shares, compared to its average volume of 175,867. The business has a fifty day moving average price of $324.18 and a 200-day moving average price of $296.02. ESCO Technologies has a one year low of $174.92 and a one year high of $362.15. The firm has a market cap of $7.91 billion, a PE ratio of 25.15, a price-to-earnings-growth ratio of 2.01 and a beta of 1.10. The company has a debt-to-equity ratio of 0.08, a quick ratio of 0.98 and a current ratio of 1.45.

ESCO Technologies Dividend Announcement

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

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Quarry LP raised its stake in ESCO Technologies by 842.9% during the 4th quarter. Quarry LP now owns 132 shares of the scientific and technical instruments company’s stock valued at $26,000 after buying an additional 118 shares during the last quarter. Osterweis Capital Management Inc. purchased a new position in shares of ESCO Technologies in the 2nd quarter worth $39,000. Aster Capital Management DIFC Ltd bought a new stake in shares of ESCO Technologies in the fourth quarter worth $39,000. Caitong International Asset Management Co. Ltd grew its holdings in shares of ESCO Technologies by 23,300.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 234 shares of the scientific and technical instruments company’s stock worth $49,000 after acquiring an additional 233 shares during the period. Finally, Kemnay Advisory Services Inc. purchased a new stake in ESCO Technologies during the fourth quarter valued at $51,000. Institutional investors own 95.70% of the company’s stock.

Key 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.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the stock. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $400.00 price objective on shares of ESCO Technologies in a research note on Friday, April 17th. JPMorgan Chase & Co. started coverage on shares of ESCO Technologies in a research note on Monday, June 15th. They issued an “overweight” rating and a $420.00 target price on the stock. Weiss Ratings upgraded shares of ESCO Technologies from a “buy (a-)” rating to a “buy (a)” rating in a report on Tuesday, July 21st. Finally, Wall Street Zen downgraded shares of ESCO Technologies from a “buy” rating to a “hold” rating in a research report on Saturday, May 9th. Two research analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Buy” and a consensus price target of $410.00.

About ESCO Technologies

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.