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Orbotech (ORBK - Free Report) is having a fantastic year so far. Shares of this Zacks #1 Rank (Strong Buy) jumped on the most recent earnings surprise and estimates continue to improve.

Company Description

Orbotech provides production solutions for specific applications in electronics supply chain. Automatic check reading products and optical inspection products are just a few of the specialized offerings from the company.

Revenue spikes 47%

On Nov 1 Orbotech announced third-quarter results that included revenues of $158.1 million. That mark is up 8% over the previous third quarter, but the top line for the first 9 months of the year has swelled 47% to $405 million.

Earnings per share flew past expectations, coming in at 61 cents compared to the consensus of 17 cents. Orbotech has beat forecasts in each of the past 7 quarters.

The company also guided higher in the earnings release. Revenue is expected to be about $525 million, up from between $500 and $510 million.

Sold Unit for $9 million

Orbotech sold its medical systems business to General Electric (GE) for $9 million guaranteed and up to $5 million more for performance.

Estimates Jump

The Zacks Consensus Estimate for 2010 is up 16 cents, to 94 cents. Next year's forecasts are up 19 cents on average, to $1.17. Compare these marks to a 9-cent loss in 2009 and you have an excellent growth story.

The Chart

Shares of ORBK soared on the earnings news and have held this elevated level quite well. It looks like we may be seeing even higher levels sooner than later.

Orbotech - ticker ORBK >

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

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