(RTTNews) - Thursday, ESCO Technologies Inc. (ESE: News ), a special purpose utility solutions provider, reported a drop in fourth quarter earnings from a year ago, as revenues declined. Going forward, the company expects first quarter earnings to be generally breakeven, while it anticipates full year 2010 earnings and revenues to decline from 2009 levels.

The St. Louis, Missouri-based ESCO's fourth quarter net income declined to $21.78 million or $0.82 per share from $24.51 million or $0.93 per share in the prior year period.

Earnings from continuing operations were $21.77 million or $0.82 per share, compared to $19.87 million or $0.75 per share a year ago.

On average, ten analysts polled by Thomson Reuters expected the company to report earnings of $0.77 per share for the quarter. Analysts' estimates typically exclude special items.

Fourth quarter sales dipped to $169.4 million from $192.5 million in the prior year period. Eight Wall Street analysts expected revenues of $176.05 million for the quarter.

Filtration sales for the fourth quarter decreased, while sales increased in the defense aerospace and space product lines at VACCO, offset by lower commercial aerospace product deliveries at PTI. Utility Solutions Group fourth quarter sales decreased $11.3 million in 2009 compared to the 2008 fourth quarter.

For fiscal 2009, the company reported net income of $49.41 million or $1.86 per share, up from $46.71 million or $1.7 per share in the previous year. Analysts were looking for earnings of $1.80 per share.
Full year revenues increased to $619.06 million from $613.56 million a year ago. Analysts estimated revenues of $627.30 million.

Additionally, the company said its Board of Directors voted to initiate a quarterly cash dividend payable at an annual rate of $0.32 per share. The first quarterly dividend of $0.08 per share would be paid on January 19, 2010 to stockholders of record as of January 4, 2010.

Looking ahead, ESCO expects 2010 first quarter earnings to be generally breakeven.

For fiscal 2010, ESCO anticipates earnings to be lower than 2009 level. On a quarterly basis, the company expects 2010 revenues and earnings to be heavily "second half" weighted as they were in 2009 and 2008. Consolidated revenues are estimated to decrease approximately 3% to 5% and earnings before tax to decline marginally compared to 2009.

ESE closed Thursday's trading at $37.36, down $1.54 or 3.96%, on a volume of about 452 thousand shares. In after hours, the stock further lost $4.38 or 11.72%, trading at $32.98.

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by RTT Staff Writer

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