Electro Scientific Industries, Inc. ( ESIO - Snapshot Report ) is expecting a strong fiscal year and analysts agree. Estimates are on the rise after the latest earnings surprise, pushing shares to a Zacks #1 Rank (Strong Buy).

Company Description

Electro supplies laser-based manufacturing solutions for the microtechnology market for precise structuring and testing in semiconductors and other components.

Top Line Jumps 72%

Electro reported fourth-quarter and full-year results on May 10 and they included and impressive 72% increase in annual revenue, to $257 million.

Net income for the quarter came in at $6.0 million, up from $2.4 million a year ago. That breaks down to $0.21 per share, up from $0.08 and beat the Zacks Consensus Estimate by a nickel. This was the fourth earnings surprise in the past 5 quarters.

Bullish Outlook

Electro sees a healthy market heading into fiscal 2012, with strong demand and good positioning. Analysts seemed to agree, raising their estimates for the upcoming quarter and year.

The Zacks Consensus Estimate for this year is up 9 cents, to $0.81. Next year's average estimate rose 7 cents, to $0.97. Given the $0.34 per share earned in 2011, expected growth rates are now 138% and 20%, respectively.

Buy on the Dip?

Shares of ESIO have taken a hit the past few weeks, but given the rising estimates this could be a good "buy on the dip" opportunity. Shares are trading at roughly 19 times this year's estimates, with a PEG of 1.4 and a price-to-book of 1.3.

Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Small Cap Trader service