Electro Scientific Industries falls despite Q4 profit
Shares of Electro Scientific Industries, Inc. (Nasdaq: ESIO) have lost power and moved into negative territory, despite news that the provider of photonic and laser micro-engineering systems improved its quarterly financial results.
The net income for the quarter ended June 2 was $7.9 million, or $0.27 per share, compared with a net income of $5.9 million, or $0.20 per share, a year earlier, the Portland, Ore.-based company said after Thursday’s close. Seven analysts surveyed by Thomson Financial were forecasting earnings of $0.25 per share.
Net sales also outpaced Wall Street’s projections, increasing 21% to $71.7 million, compared with sales of $57.9 million during the same three-month period of 2006.
Fiscal year 2007 net orders were $275.3 million, a 29% improvement over net orders of $213.8 million in fiscal year 2006.
“Continued strong performance through the fourth quarter resulted in our best overall fiscal year since 2001,” said President and CEO Nick Konidaris. “We delivered significant year-over-year gains in orders, sales and profitability to our shareholders.”
Specifically, annual orders grew 29%, contributing to a backlog of $57 million at the end of the fiscal year. That’s an increase of 14% compared with Electro Scientific Industries’ backlog of $50 million at the end of fiscal 2006.
Overall, profit for the fiscal 2007 climbed 13% to $23.5 million, or $0.80 per share, compared with a net income of $20.8 million, or $0.72 per share, last year. Revenue was $250.8 million, up 21%, compared with $207.0 million in fiscal 2006. Analysts had forecast revenues of $245.23 million.
This morning investment bank Brean Murray & Co., LLC reiterated its “Buy” rating and raised the target price to $27 from $22, citing expectations of continued sales momentum.
At 2:33 p.m. ET shares were down $0.84, or 4%, to $22.55. The 52-week high of $23.47 was achieved on July 12. The 52-week low of $17.23 was set on Aug. 1, 2006.
