Wedbush: ESCO Technologies 1Q12 EPS Weak
In a recent research report published by Wedbush, ESCO Technologies (NYSE: ESE) reported mixed 1Q12 (Dec) results in its seasonally weakest quarter.
Wedbush commented in the report, “1Q12 (Dec) revenue/EPS were $152.9m/$0.19, versus our $157.0m/$0.27 and the consensus $151.5m/$0.28. Gross margins of 39.4% were 210bps above our 37.3% estimate and 15bps above the consensus 39.2%. The largest negative variance in our model came from SG&A levels $4.7m above our estimate, driven by product launch investments that are expected to taper down in 2H12. The tax rate of 37.6%, compared to the 34.0% in our model, was a minor $0.02 EPS headwind.”
Wedbush reiterates its Outperform rating and $38 PT on ESCO Technologies, which is currently trading at $33.42.
