FEI Shares Popped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of FEI (Nasdaq: FEIC  ) rose more than 13% in intraday trading after the company reported first-quarter results that blew away estimates.

So what: We've seen this before. In the fourth quarter, FEI embarrassed Wall Street by annihilating expectations. This time, the nanoscale measurement specialist said revenue rose 6% to $197 million, while profit improved by $0.02 a share, to $0.54. Analysts were expecting $185.8 million and $0.46, respectively, according to Yahoo! Finance.

Now what: Pricing power helped spur the gains as gross margin rose nearly 4 percentage points year-over-year. Bookings also improved 14%, reflective of increased demand for its products in the life sciences, electronics, and research industries.

Better still, management expects the winds to continue blowing favorably. FEI expects to earn $0.55 to $0.61 a share on $195 million to $210 million in second-quarter revenue, well above the $185.1 million and $0.45 analysts had been calling for.

Interested in more info on FEI ? Add it to your watchlist.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. FEI Company is a Rule Breakers recommendation. You can try any of our Foolish newsletter services free for 30 days.

Tim didn't own shares in any of the companies mentioned in this article at the time of publication. Check out his portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is also on Twitter as @TheMotleyFool. Its disclosure policy is at least 10% better than other disclosure policies.

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  • Report this Comment On May 05, 2011, at 9:41 AM, mekko1 wrote:

    And everyone has forgotten FEIC's potential in making natural gas exploration more efficient, which only adds more luster going forward.

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FEIC $0.00 Down +0.00 +0.00%
FEI CAPS Rating: ***