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

ESCO Technologies (NYSE:ESE) posted its earnings results on Thursday. The scientific and technical instruments company reported $2.20 EPS for the quarter, beating the consensus estimate of $2.12 by $0.08, FiscalAI reports. The company 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%.The business’s revenue was up 14.4% compared to the same quarter last year. During the same period in the prior year, the company earned $1.60 earnings per share. 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 Price Performance

Shares of NYSE ESE traded down $22.65 during mid-day trading on Friday, reaching $305.38. 434,228 shares of the company traded hands, compared to its average volume of 175,867. ESCO Technologies has a fifty-two week low of $174.92 and a fifty-two week 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 stock has a fifty day simple moving average of $324.18 and a 200-day simple moving average of $296.02. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.45 and a quick ratio of 0.98.

ESCO Technologies Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be paid 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 is Thursday, October 1st. ESCO Technologies’s dividend payout ratio (DPR) is currently 2.69%.

Institutional Investors Weigh In On ESCO Technologies

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Quarry LP boosted its position in shares of 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 purchasing an additional 118 shares in the last quarter. Osterweis Capital Management Inc. bought a new stake in shares of ESCO Technologies in the 2nd quarter worth approximately $39,000. Aster Capital Management DIFC Ltd acquired a new stake in ESCO Technologies during the fourth quarter valued at approximately $39,000. Caitong International Asset Management Co. Ltd lifted its stake in ESCO Technologies by 23,300.0% during the third quarter. Caitong International Asset Management Co. Ltd now owns 234 shares of the scientific and technical instruments company’s stock valued at $49,000 after purchasing an additional 233 shares during the last quarter. Finally, Kemnay Advisory Services Inc. acquired a new stake in ESCO Technologies during the fourth quarter valued at approximately $51,000. 95.70% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

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

ESCO Technologies News Roundup

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.

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.