ESCO Shares Fall as Revenue Miss Offsets EPS Beat and Strong Backlog

ESCO Technologies Inc. (NYSE:ESE) shares fell 11.7% after the engineered products maker reported quarterly revenue below Wall Street expectations, overshadowing stronger earnings and a record backlog. Sales rose 16.5% year over year to $309.3 million in its fiscal second quarter, missing analysts’ estimates. Adjusted earnings were $1.91 a share, 3.8% above consensus. ESCO guided full-year revenue to about $1.31 billion at the midpoint, broadly in line with market expectations. Management cited strength in aerospace and defense, utility grid modernization and its Test segment, while flagging softer renewables demand tied to shifting tax-credit policy. The company said its pending Megger acquisition would expand its utility solutions platform. ESCO traded at $293.75 after the report, down from $332.77 before the earnings release.