ESCO Technologies (NYSE:ESE) Shares Gap Down on Disappointing Earnings

Key Points

• ESCO Technologies experienced a significant drop in share price, opening at $174.93 after a previous close of $189.87, due to weaker than expected earnings.
• The company reported $1.60 earnings per share, missing analyst expectations of $1.65 EPS, and had a total revenue of $296.34 million, below forecasts of $320.23 million.
• Despite the earnings miss, Benchmark raised its price target on ESCO Technologies from $190.00 to $200.00 and maintained a "buy" rating for the stock.

ESCO Technologies Inc. (NYSE:ESE - Get Free Report)'s share price gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $189.87, but opened at $174.93. ESCO Technologies shares last traded at $189.69, with a volume of 61,459 shares trading hands.

The scientific and technical instruments company reported $1.60 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.65 by ($0.05). ESCO Technologies had a return on equity of 11.36% and a net margin of 10.37%. The firm had revenue of $296.34 million during the quarter, compared to analysts' expectations of $320.23 million. During the same quarter in the prior year, the firm earned $1.16 EPS. The firm's revenue was up 13.6% compared to the same quarter last year.

Analyst Ratings Changes

A number of research analysts recently issued reports on the stock. Wall Street Zen downgraded shares of ESCO Technologies from a "buy" rating to a "hold" rating in a research note on Saturday. Benchmark boosted their price objective on shares of ESCO Technologies from $190.00 to $200.00 and gave the stock a "buy" rating in a research report on Friday, May 9th.

Institutional Trading of ESCO Technologies

Several institutional investors have recently modified their holdings of ESE. Opal Wealth Advisors LLC acquired a new position in shares of ESCO Technologies in the 1st quarter valued at $35,000. CX Institutional acquired a new position in shares of ESCO Technologies in the 1st quarter valued at $36,000. TD Private Client Wealth LLC acquired a new position in shares of ESCO Technologies in the 1st quarter valued at $38,000. Harbor Investment Advisory LLC acquired a new position in shares of ESCO Technologies in the 2nd quarter valued at $38,000. Finally, Maseco LLP acquired a new position in shares of ESCO Technologies in the 2nd quarter valued at $45,000. Hedge funds and other institutional investors own 95.70% of the company's stock.

ESCO Technologies Stock Up 2.0%

The business's fifty day moving average price is $189.35 and its 200 day moving average price is $169.47. The firm has a market capitalization of $5.00 billion, a price-to-earnings ratio of 43.63 and a beta of 1.23. The company has a current ratio of 2.05, a quick ratio of 1.33 and a debt-to-equity ratio of 0.05.

ESCO Technologies Company Profile

ESCO Technologies Inc produces and supplies engineered products and systems for industrial and commercial markets worldwide. It operates through three segments: Aerospace & Defense, Utility Solutions Group, and RF Test & Measurement. The Aerospace & Defense segment designs and manufactures filtration products, including hydraulic filter elements and fluid control devices used in commercial aerospace applications; filter mechanisms used in micro-propulsion devices for satellites; and custom designed filters for manned aircraft and submarines.