Back to top

Aggressive Growth

After announcing record profit levels, FEI Company (FEIC - Snapshot Report) analysts have become even more bullish on the stock. Shares are pressuring highs and showing great growth rates, but still trade with good valuations.

Company Description

FEI Company makes scientific instruments for nanoscale applications. Industries include materials science, life sciences, semiconductors, data storage, natural resources and others.

Continues to Surprise

On Oct 27 FEI reported record-setting earnings for the third quarter. Revenue jumped 34%, from $153.0 million to $205.3 million. Bookings were up nicely as well.

Net income set a company record at $26.2 million, which breaks down to EPS of $0.63. A year ago those figures were $11.9 million and $0.30, respectively.

Analysts polled by Zacks were expecting $0.55 on average, giving FEI its sixth consecutive earnings surprise.

Optimistic Outlook

After the surprise and guidance from management, analysts quickly raised estimates. Full-year forecasts for this year are up 10 cents on average, to $2.43.

Next year's Zacks Consensus Estimate rose 12 cents, to $2.64. In 2010 the company mad $1.18 per share, putting growth rates at 106% and 9%.

M&A News

FEI bought TILL Photonics, a German company that makes digital microscopes and high speed imaging systems. This deal adds to the current offerings in the life sciences industry.

The deal was for roughly $20 million, after conversion from the euro, and includes other payments if benchmarks are met.

The Chart

Shares of FEIC are near their highs, but still trade with decent valuations. The forward P/E is about 16 times and the PEG is at 1.2.

Couls this recent shift in momentum lead to a breakout?

FEI Company - ticker FEIC>
 
 
<P ALIGN=

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

Please login to Zacks.com or register to post a comment.