American Science & Engineering Crushes Earnings Estimates

American Science & Engineering (Nasdaq: ASEI  ) reported earnings on Feb. 11. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), American Science & Engineering beat expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted.

Margins dropped across the board.

Revenue details
American Science & Engineering tallied revenue of $50.8 million. The four analysts polled by S&P Capital IQ foresaw revenue of $49.1 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $57.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.73. The three earnings estimates compiled by S&P Capital IQ predicted $0.53 per share. GAAP EPS of $0.73 for Q3 were 13% lower than the prior-year quarter's $0.84 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 44.7%, 100 basis points worse than the prior-year quarter. Operating margin was 18.1%, 130 basis points worse than the prior-year quarter. Net margin was 12.0%, 100 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $48.9 million. On the bottom line, the average EPS estimate is $0.48.

Next year's average estimate for revenue is $198.4 million. The average EPS estimate is $2.24.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 970 members out of 999 rating the stock outperform, and 29 members rating it underperform. Among 309 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 303 give American Science & Engineering a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on American Science & Engineering is hold, with an average price target of $63.40.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere


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  • Report this Comment On February 12, 2013, at 4:52 PM, usfarbuo wrote:

    yeah-a lot of good it did to the stock price. it started off well at 70.00 but fall badly after that.

    let's hope the nice dividend continues.

    wonder is there is a shake-up going on in asei with notice that peterman in leaving in March-forced out?

    and, of course, fabiano leaving later as well..

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