American Science & Engineering, Inc.

American Science & Engineering, Inc. (ASEI - Snapshot Report) continues to see higher earnings estimates on record results. Analysts upped fiscal year forecasts by 2% over the past month.

Company Description

American Science & Engineering, Inc. provides innovative X-ray inspection systems.

With 50 years of experience in developing advanced X-ray security systems, ASEI’s product line utilizes a combination of technologies, including patented Z Backscatter technology, Radioactive Threat Detection (RTD), high energy transmission and dual energy transmission X-ray. These technologies offer superior X-ray threat detection for plastic explosives, plastic weapons, liquid explosives, dirty bombs and nuclear devices.

The company’s complete range of products include cargo inspection systems for port and border security, baggage screening systems for facility and aviation security, and personnel and passenger screening systems. ASEI’s systems protect high-threat facilities and help combat terrorism and trade fraud, drug smuggling, weapon smuggling, and illegal immigration and people smuggling.

The company’s customers include leading government agencies, border authorities, military bases, airports and corporations worldwide.

A Recent Contract

One of ASEI’s recent contracts included a $2.9 million order for multiple Z Backscatter Vans™ (ZBV™) from an existing Middle Eastern customer.

“We are very pleased that this customer chose to add to their existing fleet of ZBVs to secure government facilities,” said Anthony Fabiano, AS&E President and CEO. “The ZBV provides this Middle Eastern customer with unmatched mobility and versatility to face a broad range of security challenges. We continue to see increased awareness internationally in the power of AS&E’s Z Backscatter technology to quickly and effectively detect border threats such as explosives, weapons, drugs, and stowaways.”

Higher Estimates

Analysts hiked earnings forecasts on the strong quarter. Estimates for the fiscal year ending March 2009 were increased by 2% over the past month to $3.18 per share.

The company’s earnings per share are expected to grow about 18% over the next 3 – 5 years, which is above the industry average expectation of 15%.

Strong Quarterly Results Signal Growth

American Science & Engineering recently announced fiscal third-quarter results, which included a record revenue total that was 53% above the previous year’s level.

Earnings per share of $1.13 topped the consensus estimate by 24% and outpaced the year-prior result.

President and CEO Anthony Fabiano said, “revenue growth in the quarter was driven by a robust demand for our Z Backscatter Vans, AS&E’s proprietary cargo products, and field services. Operating income significantly increased in the quarter with improved gross margins from higher revenues, significant improvement in cargo margins, and continued focus on controlling overhead and expenses. These strong results were enabled by the successful execution of our strategies to grow revenue and earnings to increase shareholder value over the long-term.”

Solid Income

ASEI also declared a dividend of 20 cents per share, which was paid out on March 5, 2009. The company’s dividend yield of 1% is ahead of the industry average