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Electronics For Imaging, Inc. (EFII - Free Report) is coming off of a record-setting quarter and excellent growth on the top and bottom lines.

Earnings were better than expected and this Zacks #1 Rank (Strong Buy) is on a roll.

Company Description

Electronics For Imaging makes digital printing products and services from creation to print. They offered color print servers, super-wide inkjet printers, inks and software.

Picture-Perfect Quarter

On Jul 21 the company reported a 19% increase in revenues, to over $141 million. The main driver was growth in the software applications business. Recurring revenues hit an all-time high.

Net income almost tripled to $11.3 million. After adjustments that works out to $0.12 per share, a penny better than expected. This was EFII's fifth consecutive earnings surprise.

Estimates Jump

There is only one analyst polled by Zacks for the consensus and they have raised forecasts across the board. The full-year estimate for 2011 is up 9 cents, to $0.79. Next year's is up a dime to $0.98. That puts expected growth rates at 80% and 24%, respectively.

Having just one analyst has both advantages and disadvantages. While it is a bit riskier that the analyst may be wrong, that risk comes with the potential for bigger surprises and bigger revisions. Limited analyst coverage also ensures that there is no herd mentality, also allowing for much greater upside,

New Acquisition

Electronics For Imaging said that it will buy a privately held company. Entrac provides self-service and payment products, including mobile printing. The financial details were not discussed but this is a rapidly growing area of business.

EFII has a very strong balance sheet right now so there may be other deals coming in the near future.

Great Trends

Not only is the share price turning around for EFII, making for a bullish trend but the estimates are also looking great. Solid year over year growth coupled with raising estimates through out the year is a great formula for aggressive growth.

Electronics For Imaging ticker EFII>

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

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