American Science & Engineering Inc.
(ASEI - Snapshot Report
) is a provider of security and protection services that has been offering regular quarterly dividend payments for years. This Zacks #1 Rank (Strong Buy) has a solid 5-year average dividend yield of 1.8%. On November 5, ASEI posted impressive fiscal second quarter results that included an earnings surprise of 22.6%. For all of these reasons, American Science & Engineering looks to be a good stock for investors seeking both growth and income.
ASEI has been offering regular dividend payments to shareholders since 2007. Recently, it received approval for a quarterly dividend payment of 50 cents to shareholders on December 3, 2012. The stock currently yields a solid 3.3% based on an annual dividend rate of $2.00 per share.
Apart from dividends, earnings per share in its fiscal second quarter were 76 cents, up 2.7% year over year and above the Zacks Consensus Estimate of 62 cents. However, revenue fell 15.5% to roughly $46.3 million.
Earnings Momentum on the Rise
The Zacks Consensus Estimate for the fiscal year ending March 2013 is currently $2.78 per share, which is up 9% in the past month. The last 7 days alone have attributed for nearly 7% of that gain.
Meanwhile, the Zacks Consensus Estimate for the fiscal year ending March 2014 is $2.81 per share, up 20% in 30 days and 4.4% in 7 days.
American Science & Engineering is currently trading at a forward P/E of 21.3x, compared with 15.4x for the peer group. The companys ROE stands at 7.9%, versus the peer group average of 3.0%.
As can be observed from the chart below, the last six months have been favorable for the company as its stock climbed from a $50.00 to $60.00. The outlook seems bright for the stock with estimates moving higher for the years ahead.
Founded in 1958, American Science & Engineering Inc. is headquartered in Billerica, Massachusetts and is one of the leading security solutions providers in the U.S. and internationally. The company designs and sells X-ray inspection and other detection products, especially designed for homeland security, force protection, and other critical defense applications. Currently, the company has a market capitalization of $490 million.
Want More of Our Best Recommendations?
Zacks' Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Then each week he hand-selects the most compelling trades and serves them up to you in a new program called Zacks Confidential.