November 8, 2012
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 Rofin-Sinar Technologies (Nasdaq: RSTI ) are up by 14% today after the company posted fourth-quarter and full-year results that bested analyst expectations on top and bottom lines.
So what: For the fourth quarter, Rofin-Sinar posted $0.35 in EPS on $147.5 million revenue against analyst estimates of $0.28 in EPS and $127.0 million in revenue. Rofin-Sinar's full-year results came in with $1.20 in EPS on $540.1 million in revenue, which also beat the full-year consensus expectations of $1.14 in EPS on $521.1 million in revenue.
However, Rofin-Sinar offered mediocre guidance for the upcoming first fiscal quarter, citing (what else?) global macroeconomic uncertainty for its projections, which ranged from $0.25 to $0.28 in EPS on $130 million-$135 million in revenue. The revenue projection hits the analyst consensus of $133.4 million in the middle, but misses on the $0.30 in EPS that was expected.
Now what: With projections below its fourth-quarter results, you might think that Rofin-Sinar's pop won't be sustainable, but the company's P/E is only 14.2 right now. However, the company's revenue and net income have both been slipping before this report, and a projected decline will only continue that mediocrity. Rofin-Sinar needs to show some genuine positive momentum in order to maintain investor enthusiasm beyond today's bounce.
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