ESCO Technologies (NYSE: ESE) reported Q4 EPS of $0.85, $0.07 better than the analyst estimate of $0.78. Revenue for the quarter came in at $205.5 million versus the consensus estimate of $201.18 million.

GUIDANCE:

ESCO Technologies sees FY2022 revenue of $810-830 million, versus the consensus of $801 million.

• Net sales are expected to be in the range of $810 to $ 830 million (an increase of 13 to 16 percent) on a consolidated basis, with A&D growing 10 to 12 percent, USG growing 28 to 32 percent (3 to 5 percent organically) and Test growing 3 to 5 percent;
• Adjusted EBIT is expected to increase approximately 20 to 25 percent with Adjusted EBIT margins increasing to 13.0 to 13.5 percent of sales;
• Adjusted EBITDA is expected to increase approximately 20 to 25 percent with Adjusted EBITDA margins increasing to 19.0 to 19.5 percent of sales;
• Interest expense is expected to increase to approximately $4 million in 2022, excluding the impact of any future acquisitions;
• Non-cash depreciation and amortization of intangible assets is expected to increase approximately $6 million, or $0.18 per share after-tax, related to previous acquisitions and capital spending.
• The effective income tax rate is expected to increase to 23 to 24 percent in 2022.
• Management projects 2022 Adjusted EPS to be in the range of $3.10 to $3.20 per share (compared to 2021 Adjusted EPS of $2.59 per share). This increase reflects meaningful sales and earnings growth, partially offset by the additional depreciation and amortization charges and incremental tax expense as noted above.
• Given the quarterly variability in the recovery of the aerospace and electric utility end-markets, we expect flat to slightly down EPS in Q1 2022 compared to the prior year. Consistent with prior years, Management expects 2022 revenues and Adjusted EPS to be more back half weighted resulting in the second half growth being stronger than the first half.

For earnings history and earnings-related data on ESCO Technologies (ESE) click here.