ESP earnings analysis
What we found in ESP's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Espey Mfg. & Electronics Corp. reported solid quarterly results, with revenue of $11.42 million, reflecting an increase from $10.30 million in the prior year. Gross margins improved substantially to 37.0%, while diluted EPS surged to $1.03 from $0.63 a year ago. Despite a year-over-year sales decline for the nine-month period, management expects stronger sales in the fourth quarter, driven by their significant backlog.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Significant Revenue Growth
- Net sales for Q3 2026 reached $11,422,655, up from $10,302,719 in Q3 2025, marking a 10.9% increase.
- High Gross Margin Improvement
- Gross profit margin rose to 37.0% in Q3 2026, up from 28.6% in Q3 2025, indicating improved cost efficiencies.
- Strong EPS Growth
- Diluted EPS jumped to $1.03 for Q3 2026, compared to $0.63 in Q3 2025, demonstrating effective management of costs.
- Increased Cash Flows from Operations
- Net cash provided by operating activities totaled $6,297,074 for the nine months ended March 31, 2026, although this was lower than $18,219,771 in the prior year.
- Backlog Remains Robust
- Total backlog at March 31, 2026, was approximately $137.1 million, slightly down from $138 million a year ago, indicating stable demand.
- Effective Tax Management
- The effective tax rate for Q3 2026 was 15.5%, down from approximately 18.3% in Q3 2025, benefiting from stock option exercises.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Declining Year-to-Date Revenue
- Total sales for the nine months ended March 31, 2026 were $32,652,434, a decrease from $34,354,677 in the prior year.
- Increased Inventories
- Working capital increased significantly, primarily due to a rise in inventories that could pressure liquidity.
- Dip in New Orders
- New orders received in the first nine months of FY2026 were $30 million, down from $75.1 million in the same period last year.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.03
- Gross margin
- 37%
What they said about what is next.
Management expects higher revenues for FY2026 relative to FY2025, driven by backlog fulfillment, with Q4 results anticipated to surpass prior year.
The filing reads better than the one before it.
What came before.
- 10-Q · February 10, 2026
- Espey reported quarterly net sales of $12,136,903 (down from $13,608,740 a year ago) while delivering diluted EPS of $0.99. Gross margin expanded to 34.7% and operating margin to 25.3%, supporting higher net income…
- 10-Q · November 12, 2025
- Espey reported net sales of $9,092,876 and diluted EPS of $0.76 for the three months ended September 30, 2025. Revenue declined versus prior-year net sales of $10,443,218 (-$1,350,342 or -12.9%), but gross margin…
- 10-Q · May 12, 2025
- Espey reported a strong Q3 (three months ended March 31, 2025) with revenue of $10,302,719 (+$2,048,066 or +24.8% vs the prior-year quarter of $8,254,653) and margin expansion. Gross margin rose to 28.6% and operating…
- 10-K · September 27, 2024
- Espey reported fiscal 2024 revenue of $38,736,319 (up 8.8% vs. $35,592,323) with gross profit of $10,653,060 (27.5% margin) and net income of $5,815,140 (diluted EPS $2.29). Management expects fiscal 2025 revenue to be…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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