American Science and Engineering, Inc. (ASEI) analysts have raised full-year estimates for the security device makers which continues to climb on fresh terrorism worries.
Company Description
American Science and Engineering makes X-ray inspection devices to detect explosives, plastic weapons, and nuclear devices. The scanners are used for cargo inspection, baggage screening, and passenger screen for aviation security.
Crushed Estimates
When American Science reported second-quarter results for fiscal 2010 it showed earnings per share of $1.18, a 31 cent surprise. Net income rose 45% on a year-over-year basis.
Revenues grew more than $5 million to over $61 million, a 9% improvement for American Science.
Estimates Rising
Analysts for American Science raised full-year projection just after the quarterly report. The full-year Zacks Consensus for 2010 is not $3.95, up 42 cents. Next year’s estimates are averaging $4.20, up from $3.49.
These numbers include revisions from 2 of the 3 analysts in just the past week. American Science’s growth rates are expected to be 24% this fiscal year and 6% in fiscal 2011.
Industry Leader
American Science operates with a net profit margin of 15% and an ROE of 20%. Compare both figures to a roughly 0% industry average. Additionally, ASEI carries virtually no debt, while its peers average a debt-to-equity ratio of 1.1 times.
The Chart
Shares of ASEI soared after the failed terrorist attach over the holidays. However, American Science is still trading at a decent value, roughly 21 times forward earnings.
Zacks Growth Trader serviceZacks Investment Research
