From Briefing.com. Great story, til the end. Anyone want to comment?
ADVANCED ENERGY INDUSTRIES INC (AEIS) 33 1/16 +2 3/16. Unlike many companies in the semiconductor equipment industry, Advanced Energy's
earnings continue to soar on both a sequential and year-over-year basis.
For example, sector player Novellus Systems this morning reported 3rd
qtr net of $1.14 a share, which was 5 cents ahead of Wall Street
estimates and 14% higher sequentially. However, on a year-over-year
basis, results fell 25% from $1.53 a share. For the quarter ended
September 30, this maker of power delivery systems once again exceeded
estimates, this time topping views by 8 cents, or 50%, on a 97%
year-over-year and a 30% sequential improvement in sales. Excluding
one-time charges, net income rose to $5.5 million, or $0.24 a share, up
sharply from the $123,000, or $0.01 a share reported for the prior year
period. Gross margins rose to 40% from year-ago's 30.5% and the 38.4%
level experienced in the previous quarter. For the 4th consecutive time,
Advanced Energy has absolutely demolished Wall Street mean estimates, in
the past exceeding views by as little as 33% and by as much as 200%. At
current price levels, AEIS shares trade at a less-than-compelling 29.5x
1998 estimates of $1.12 a share versus long-term growth rate forecasts
of 25%. While estimates and growth rate forecasts will certainly be
pushed higher following the latest quarter's robust numbers, the stock
has already gained 450% since the beginning of the year and may find it
difficult to move meaningfully higher from current levels. |
