American Science & Engineering

American Science & Engineering, Inc. (ASEI - Snapshot Report) has been trading ahead of the market on solid fundamentals and upbeat Street forecasts. Analysts see earnings per share growth coming in at 66% for the current fiscal year followed by 14% growth next year.

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.

Recent Events

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

The company recently announced its first order for the new Z Gantry™ multi-view Z Backscatter™ cargo and vehicle screening system for the Department of Defense. ASEI noted that the new system is ideal for inspecting cargo and vehicles for stowaways, explosives and other contraband.

The company also recently announced a $6.3 million follow-on order from a Middle East client for multiple Z Portal® cargo and vehicle screening systems to protect critical infrastructure in the region. The Z Portal systems will be used to scan vehicles and trucks entering the client’s high-risk facilities to detect explosive threats and contraband.

Higher Estimates

Forecasts for the fiscal year were increased by 4% over the past 3 months to $3.30 per share. Analysts see earnings per share growth coming in at 66% for the fiscal year followed by 14% growth next year.

ASEI’s fiscal year ended March 2009. Results are scheduled for release on May 12.

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

The company’s third-quarter results 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.

Solid Income

ASEI’s annual dividend of 80 cents per share translates into a dividend yield of 1.5%, well ahead of the industry average.