Exponent, Inc (EXPO) is coming off of yet another earning surprise. The company also raised its guidance, which drove analysts to do the same.
Company Description
Exponent is an engineering and scientific consulting firm. The company is best known for analyzing accidents and failures but is growing its presence in the human health, environmental and engineering issues areas.
Big Beat
On Oct 19 Exponent reported third-quarter results that included EPS of $0.60 per share, 9 cents higher than the Zacks Consensus Estimate. The company has topped forecasts in each quarter except once, when it met expectations in early 2010.
The company purchased $16.3 million of its own stock, putting the total repurchase amount to over $39 million. Additionally, Exponent raised its guidance for the remainder of the year.
Upward Estimate Revisions
Analysts already started raising full-year estimates for this year, as well as 2012. Analysts polled by Zacks are expecting $2.10 per share this year, up 9 cents since the earnings release.
Next year’s average estimate is at $2.23, up 9 cents as well. In 2010 the company earned $1.83, putting growth rates at 15% and 6%, respectively.
Hot Industry
The Consulting industry is currently the 18th ranked industry out of 265 on Zacks.com. Exponent is at the top of the 16-company list. EXPO is showing a net profit margin of almost 12%, which is about twice the industry average.
The Chart
Shares of EXPO saw a nice jump on the earnings surprise and shares are now pressuring the 52-week high. With the current optimism, rising estimates, and momentum there is a good chance the stock sees new highs very soon.
Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Small Cap Trader service
