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What: Shares of technology company Newport (Nasdaq: NEWP ) rose as much as 17% in early trading after the company released earnings.
So what: Revenue actually fell short of estimates, growing 18% to $153.7 million, but analysts expected $157.7 million. But investors are overlooking that miss and focusing on the bottom line where earnings per share of $0.24 were $0.06 ahead of estimates.
Now what: Sales were up year over year, but SG&A expenses ate up the additional profit that came, accounting for the fall in earnings from last year. The earnings beat was encouraging but I would like to see better margins and earnings headed up instead of down before buying. A forward earnings multiple of 9.2 isn't terribly expensive so, with some improvements in operations, this company could become a good buy.
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