Latest news with #BryanSayler
Yahoo
12-06-2025
- Business
- Yahoo
ESE Q1 Earnings Call: Maritime Acquisition Drives Growth Outlook, Margins Expand Across Segments
Engineered products manufacturer ESCO (NYSE:ESE) met Wall Street's revenue expectations in Q1 CY2025, with sales up 6.6% year on year to $265.5 million. The company's full-year revenue guidance of $1.2 billion at the midpoint came in 4.5% above analysts' estimates. Its non-GAAP profit of $1.35 per share was 8.3% above analysts' consensus estimates. Is now the time to buy ESE? Find out in our full research report (it's free). Revenue: $265.5 million vs analyst estimates of $266.4 million (6.6% year-on-year growth, in line) Adjusted EPS: $1.35 vs analyst estimates of $1.25 (8.3% beat) Adjusted EBITDA: $56.67 million vs analyst estimates of $54.29 million (21.3% margin, 4.4% beat) Management raised its full-year Adjusted EPS guidance to $6 at the midpoint, a 6.2% increase Operating Margin: 16.2%, up from 13.3% in the same quarter last year Backlog: $932.3 million at quarter end Market Capitalization: $4.75 billion ESCO'S first quarter results were shaped by improved operational performance across all three of its business segments, with management highlighting order acceleration and favorable product mix as key contributors. CEO Bryan Sayler emphasized the stabilization and recovery in the test segment, citing increased activity in electromagnetic compatibility, healthcare, and industrial end-markets. The utility group benefited from healthy demand in electricity infrastructure, while aerospace and defense growth was supported by increased Navy orders and commercial aerospace recovery. CFO Chris Tucker noted that incremental margins were driven by price increases, particularly in commercial aerospace, and better mix in both the utility and test businesses. Recent operational challenges in specific product lines, such as those discussed in prior years, were described as largely resolved, contributing to the margin expansion experienced this quarter. Looking ahead, ESCO's updated full-year adjusted EPS guidance—now an all-in range of $5.85 to $6.15 per share, which incorporates an increase in the base business outlook to $5.65-$5.85 per share and an estimated $0.20 to $0.30 per share from the recent ESCO Maritime Solutions acquisition—and its strategic priorities signal management's confidence in continued growth. CEO Bryan Sayler pointed to favorable end-market exposure in defense and utilities, noting, 'We feel strongly that our end market exposure remains favorable, and growth tailwinds should persist as we move forward.' Management is watching tariff impacts closely but believes mitigation efforts—including pricing adjustments and operational shifts—should limit the net effect. CFO Chris Tucker added that the maritime acquisition is trending at or above original projections and is expected to enhance both growth and margin profile. However, Sayler acknowledged that macroeconomic uncertainties and evolving trade policies could create headwinds, particularly if retaliatory actions emerge, but the company believes its diverse business mix provides resilience. Management attributed the quarter's improved profitability to favorable business mix, successful price actions, and the initial contribution from the newly acquired maritime business. Maritime Solutions acquisition completed: The closing of ESCO Maritime Solutions (formerly SM&P) was highlighted as a major strategic milestone that strengthens the company's margin and growth profile. Management stated the business is performing at or above original expectations, providing immediate contribution to both sales and adjusted earnings. Aerospace and defense margin expansion: Growth in Navy and commercial aerospace orders drove higher margins, supported by favorable program and customer mix. Price increases in commercial aerospace began to flow through, with CFO Chris Tucker noting, 'We're starting to see some of that really helping us and coming through nicely.' Utility group's product mix shift: The utility segment benefited from double-digit order growth at Doble, and margin gains were attributed to a shift toward higher-margin legacy offline testing products. NRG, another utility business, stabilized after prior declines, contributing to overall profitability. Test segment recovery: The test business saw a broad-based recovery in order activity, with strong demand in electromagnetic compatibility (EMC) testing, healthcare (notably magnet swaps in hospitals), and industrial applications like electromagnetic pulse (EMP) filters for data centers and utilities. Management described this as a trend likely to persist. Tariffs and trade risk mitigation: Management proactively included estimated tariff impacts in its outlook, with mitigation measures such as pricing actions and operational adjustments expected to offset some of the exposure. The company remains more of a net exporter, and broader risks are seen as demand-related if global trade tensions escalate. ESCO's full-year outlook is driven by the integration of the maritime acquisition, ongoing demand in defense and utility markets, and efforts to counteract tariff-related headwinds. Maritime Solutions integration: The addition of ESCO Maritime Solutions is expected to enhance both top-line growth and profit margins, with management projecting that the business will continue to outperform initial assumptions. Visibility into U.S. and Royal Navy programs provides confidence in sustained demand and healthy backlogs. End-market momentum in utilities and defense: Management anticipates stable growth in electricity infrastructure (driven by grid modernization, aging infrastructure, and extreme weather) and continued strength in prioritized defense programs, particularly submarines. Exposure to top Department of Defense priorities is expected to ensure funding stability. Tariff and macroeconomic uncertainties: While management has factored in estimated tariff costs, they are monitoring for potential retaliatory actions and slower demand in certain export markets. Actions such as price adjustments and operational flexibility are in place to help mitigate these risks, but broader economic shifts remain a possible headwind. Looking ahead, our analysts will be monitoring (1) the successful integration and ongoing performance of ESCO Maritime Solutions, particularly its contribution to margins and backlog; (2) order and sales momentum in the utility and test segments, especially as infrastructure investments and healthcare upgrades continue; and (3) management's effectiveness in offsetting tariff impacts through pricing and operational adjustments. Progress on the potential sale of VACCO and stability in defense funding will also be key indicators to watch. ESCO currently trades at a forward P/E ratio of 29.7×. At this valuation, is it a buy or sell post earnings? See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
03-06-2025
- Business
- Yahoo
Engineered Components and Systems Stocks Q1 Highlights: ESCO (NYSE:ESE)
As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the engineered components and systems industry, including ESCO (NYSE:ESE) and its peers. Engineered components and systems companies possess technical know-how in sometimes narrow areas such as metal forming or intelligent robotics. Lately, automation and connected equipment collecting analyzable data have been trending, creating new demand. On the other hand, like the broader industrials sector, engineered components and systems companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies' offerings. The 12 engineered components and systems stocks we track reported a strong Q1. As a group, revenues beat analysts' consensus estimates by 1.2% while next quarter's revenue guidance was 1.1% below. Luckily, engineered components and systems stocks have performed well with share prices up 10.6% on average since the latest earnings results. A developer of the communication systems used in the Batmobile of 'The Dark Knight,' ESCO (NYSE:ESE) is a provider of engineered components for the aerospace, defense, and utility sectors. ESCO reported revenues of $265.5 million, up 6.6% year on year. This print was in line with analysts' expectations, and overall, it was a very strong quarter for the company with full-year EPS guidance exceeding analysts' expectations. Bryan Sayler, Chief Executive Officer and President, commented, 'Q2 was another strong quarter as we delivered 7 percent top line growth, 250 basis points of Adjusted EBITDA margin expansion, and a 24 percent increase in Adjusted EPS compared to the prior year. All three segments delivered solid revenue growth, highlighted by strength across our Navy, commercial aerospace, utility, and Test end-markets. It was very positive to see orders increase 22 percent over the prior year, with particular strength in both USG and Test. ESCO scored the fastest revenue growth and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 9.8% since reporting and currently trades at $179.60. We think ESCO is a good business, but is it a buy today? Read our full report here, it's free. Headquartered in Milwaukee, Regal Rexnord (NYSE:RRX) provides power transmission and industrial automation products. Regal Rexnord reported revenues of $1.42 billion, down 8.4% year on year, outperforming analysts' expectations by 3%. The business had a stunning quarter with a solid beat of analysts' organic revenue and EBITDA estimates. The market seems happy with the results as the stock is up 19.6% since reporting. It currently trades at $131.78. Is now the time to buy Regal Rexnord? Access our full analysis of the earnings results here, it's free. Based in Cleveland, Park-Ohio (NASDAQ:PKOH) provides supply chain management services, capital equipment, and manufactured components. Park-Ohio reported revenues of $405.4 million, down 2.9% year on year, falling short of analysts' expectations by 4.7%. It was a softer quarter as it posted a significant miss of analysts' EBITDA and EPS estimates. Park-Ohio delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 16.5% since the results and currently trades at $17.82. Read our full analysis of Park-Ohio's results here. Founded as a single retail store, Arrow Electronics (NYSE:ARW) provides electronic components and enterprise computing solutions to businesses globally. Arrow Electronics reported revenues of $6.81 billion, down 1.6% year on year. This print topped analysts' expectations by 7.2%. It was an exceptional quarter as it also logged an impressive beat of analysts' EPS estimates and a solid beat of analysts' EBITDA estimates. Arrow Electronics achieved the biggest analyst estimates beat among its peers. The stock is up 5.7% since reporting and currently trades at $117.51. Read our full, actionable report on Arrow Electronics here, it's free. Founded by a steel salesman, Worthington (NYSE:WOR) specializes in steel processing, pressure cylinders, and engineered cabs for commercial markets. Worthington reported revenues of $304.5 million, down 3.9% year on year. This result surpassed analysts' expectations by 6.7%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts' EPS estimates and a solid beat of analysts' adjusted operating income estimates. The stock is up 41.6% since reporting and currently trades at $58.94. Read our full, actionable report on Worthington here, it's free. Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Globe and Mail
28-04-2025
- Business
- Globe and Mail
Engineered Components and Systems Q4 Earnings: ESCO (NYSE:ESE) is the Best in the Biz
As the Q4 earnings season comes to a close, it's time to take stock of this quarter's best and worst performers in the engineered components and systems industry, including ESCO (NYSE:ESE) and its peers. Engineered components and systems companies possess technical know-how in sometimes narrow areas such as metal forming or intelligent robotics. Lately, automation and connected equipment collecting analyzable data have been trending, creating new demand. On the other hand, like the broader industrials sector, engineered components and systems companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies' offerings. The 13 engineered components and systems stocks we track reported a satisfactory Q4. As a group, revenues along with next quarter's revenue guidance were in line with analysts' consensus estimates. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.9% since the latest earnings results. Best Q4: ESCO (NYSE:ESE) A developer of the communication systems used in the Batmobile of 'The Dark Knight,' ESCO (NYSE:ESE) is a provider of engineered components for the aerospace, defense, and utility sectors. ESCO reported revenues of $247 million, up 13.2% year on year. This print exceeded analysts' expectations by 2.8%. Overall, it was a stunning quarter for the company with EPS guidance for next quarter exceeding analysts' expectations. Bryan Sayler, Chief Executive Officer and President, commented, 'Our fiscal year got off to an outstanding start as we delivered 13 percent top line growth, over 200 basis points of Adjusted EBITDA margin expansion, and a 41 percent increase in Adjusted EPS compared to the prior year. All three segments delivered solid revenue growth, highlighted by notable strength across our Navy, commercial aerospace and utility end-markets. It was also great to see our Test business deliver a solid quarter with improving order flow, double digit revenue growth, and over 500 basis points of margin expansion. ESCO pulled off the fastest revenue growth of the whole group. The stock is up 18.7% since reporting and currently trades at $157.07. Is now the time to buy ESCO? Access our full analysis of the earnings results here, it's free. Arrow Electronics (NYSE:ARW) Founded as a single retail store, Arrow Electronics (NYSE:ARW) provides electronic components and enterprise computing solutions to businesses globally. Arrow Electronics reported revenues of $7.28 billion, down 7.2% year on year, outperforming analysts' expectations by 3.2%. The business had a very strong quarter with a solid beat of analysts' EBITDA estimates. The stock is down 3.6% since reporting. It currently trades at $110.83. Is now the time to buy Arrow Electronics? Access our full analysis of the earnings results here, it's free. Weakest Q4: Regal Rexnord (NYSE:RRX) Headquartered in Milwaukee, Regal Rexnord (NYSE:RRX) provides power transmission and industrial automation products. Regal Rexnord reported revenues of $1.46 billion, down 9.1% year on year, falling short of analysts' expectations by 1.9%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts' expectations. As expected, the stock is down 31% since the results and currently trades at $106.91. Read our full analysis of Regal Rexnord's results here. Enpro (NYSE:NPO) Holding a Guinness World Record for creating the world's largest gasket, Enpro (NYSE:NPO) designs, manufactures, and sells products used for machinery in various industries. Enpro reported revenues of $258.4 million, up 3.7% year on year. This number surpassed analysts' expectations by 3.3%. Overall, it was a very strong quarter as it also logged a solid beat of analysts' EBITDA estimates and a decent beat of analysts' EPS estimates. The stock is down 24.4% since reporting and currently trades at $147.73. Read our full, actionable report on Enpro here, it's free. Graham Corporation (NYSE:GHM) Founded when its founder patented a unique design for a vacuum system used in the sugar refining process, Graham (NYSE:GHM) provides vacuum and heat transfer equipment for the energy, petrochemical, refining, and chemical sectors. Graham Corporation reported revenues of $47.04 million, up 7.3% year on year. This print lagged analysts' expectations by 5%. Zooming out, it was a mixed quarter as it also recorded an impressive beat of analysts' EPS estimates but full-year revenue guidance slightly missing analysts' expectations. Graham Corporation had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is down 34.2% since reporting and currently trades at $31.01. Read our full, actionable report on Graham Corporation here, it's free. Market Update As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
Yahoo
28-04-2025
- Business
- Yahoo
Engineered Components and Systems Q4 Earnings: ESCO (NYSE:ESE) is the Best in the Biz
As the Q4 earnings season comes to a close, it's time to take stock of this quarter's best and worst performers in the engineered components and systems industry, including ESCO (NYSE:ESE) and its peers. Engineered components and systems companies possess technical know-how in sometimes narrow areas such as metal forming or intelligent robotics. Lately, automation and connected equipment collecting analyzable data have been trending, creating new demand. On the other hand, like the broader industrials sector, engineered components and systems companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies' offerings. The 13 engineered components and systems stocks we track reported a satisfactory Q4. As a group, revenues along with next quarter's revenue guidance were in line with analysts' consensus estimates. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.9% since the latest earnings results. A developer of the communication systems used in the Batmobile of 'The Dark Knight,' ESCO (NYSE:ESE) is a provider of engineered components for the aerospace, defense, and utility sectors. ESCO reported revenues of $247 million, up 13.2% year on year. This print exceeded analysts' expectations by 2.8%. Overall, it was a stunning quarter for the company with EPS guidance for next quarter exceeding analysts' expectations. Bryan Sayler, Chief Executive Officer and President, commented, 'Our fiscal year got off to an outstanding start as we delivered 13 percent top line growth, over 200 basis points of Adjusted EBITDA margin expansion, and a 41 percent increase in Adjusted EPS compared to the prior year. All three segments delivered solid revenue growth, highlighted by notable strength across our Navy, commercial aerospace and utility end-markets. It was also great to see our Test business deliver a solid quarter with improving order flow, double digit revenue growth, and over 500 basis points of margin expansion. ESCO pulled off the fastest revenue growth of the whole group. The stock is up 18.7% since reporting and currently trades at $157.07. Is now the time to buy ESCO? Access our full analysis of the earnings results here, it's free. Founded as a single retail store, Arrow Electronics (NYSE:ARW) provides electronic components and enterprise computing solutions to businesses globally. Arrow Electronics reported revenues of $7.28 billion, down 7.2% year on year, outperforming analysts' expectations by 3.2%. The business had a very strong quarter with a solid beat of analysts' EBITDA estimates. The stock is down 3.6% since reporting. It currently trades at $110.83. Is now the time to buy Arrow Electronics? Access our full analysis of the earnings results here, it's free. Headquartered in Milwaukee, Regal Rexnord (NYSE:RRX) provides power transmission and industrial automation products. Regal Rexnord reported revenues of $1.46 billion, down 9.1% year on year, falling short of analysts' expectations by 1.9%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts' expectations. As expected, the stock is down 31% since the results and currently trades at $106.91. Read our full analysis of Regal Rexnord's results here. Holding a Guinness World Record for creating the world's largest gasket, Enpro (NYSE:NPO) designs, manufactures, and sells products used for machinery in various industries. Enpro reported revenues of $258.4 million, up 3.7% year on year. This number surpassed analysts' expectations by 3.3%. Overall, it was a very strong quarter as it also logged a solid beat of analysts' EBITDA estimates and a decent beat of analysts' EPS estimates. The stock is down 24.4% since reporting and currently trades at $147.73. Read our full, actionable report on Enpro here, it's free. Founded when its founder patented a unique design for a vacuum system used in the sugar refining process, Graham (NYSE:GHM) provides vacuum and heat transfer equipment for the energy, petrochemical, refining, and chemical sectors. Graham Corporation reported revenues of $47.04 million, up 7.3% year on year. This print lagged analysts' expectations by 5%. Zooming out, it was a mixed quarter as it also recorded an impressive beat of analysts' EPS estimates but full-year revenue guidance slightly missing analysts' expectations. Graham Corporation had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is down 34.2% since reporting and currently trades at $31.01. Read our full, actionable report on Graham Corporation here, it's free. As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Sign in to access your portfolio
