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Zacks Investment Research upgraded Brooks Automation, Inc. to a Zacks Rank #1 (Strong Buy) on Jul 10, 2013.

Why the Upgrade?

Shares of Brooks Automation have risen by 7.96% since the company reported its second quarter of fiscal 2013 (ended Mar 31) results on May 9. Adjusted earnings per share were 1 cent below 20 cents earned in the year-ago quarter but an improvement over a 6 cent loss in the previous quarter. Also, the results surpassed the Zacks Consensus Estimate of a 3 cent loss per share by 133.3%.

Sequentially, revenue grew 19%, reflecting soaring demand for front end semiconductor products. Order bookings stood at $121.3 million, up 31% sequentially. Talking of margins, adjusted gross margin in the quarter improved 20 basis points sequentially and came in at 32.1%.

For fiscal 2013, management of Brooks Automation anticipates revenue to be within the $116-$124 million range and non-GAAP earnings per share to be within the 1 cent-5 cents range. At mid points, revenue guidance reflects a 2.6% sequential growth while earnings guidance reflects 200% sequential growth.

In the last 60 days, the Zacks Consensus Estimate for Brooks Automation has gone up by 10.0% to 11 cents for fiscal 2013 and increased 1.4% to 71 cents for fiscal 2014. Also, the company had positive earnings surprise in three out of four trailing quarters with an average of 113.1%.

Others Stocks to Consider:

Brooks Automation, Inc. is a $657 million company, operating in the semiconductor equipment and materials industry. Other stocks to watch out for in the industry are Cohu, Inc. , Intevac Inc. and Mattson Technology Inc. , each with a Zacks Rank #2 (Buy).
 

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