Shares of Electro Scientific Industries (NASDAQ:ESIO) jumped on Thursday after the supplier of laser-based manufacturing solutions reported preliminary third-quarter results that handily beat analyst expectations. As of 11:40 a.m. EST, the stock was up about 19.7%.
Electro Scientific expects to report third-quarter revenue between $106 million and $111 million. This is well above the consensus analyst estimate of just $85 million. Third-quarter bookings of about $134 million are also expected, up from $44.1 million in the prior-year period.
Adjusted earnings per share are now expected to exceed the company's previous guidance range. Electro Scientific's second-quarter report included adjusted earnings guidance of $0.48 to $0.60 per share. With an average analyst estimate of $0.55, this new guidance will put earnings well above expectations.
Electro Scientific President and CEO Michael Burger provided some additional details: "I'm pleased the market conditions we experienced in the summer of 2017 continued into the December quarter, enabling us to deliver another exceptional quarter with both our top and bottom line results projected to exceed expectations. Our strong results continue to be driven primarily by capacity expansion in the flexible circuit market which generated strong demand for our industry-leading laser drilling products."
On top of beating analyst expectations for the third quarter, Electro Scientific also expects strong sales in the next two quarters. "Given the strong third quarter demand, our currently elevated backlog position and our visibility into the current buy cycle, we now expect fourth quarter 2018 and first quarter 2019 revenues to approximate the same level as the third quarter," said Burger.
Electro Scientific plans to release its full third-quarter results on Jan. 31. Thursday's surge comes after a 262% gain for the stock in 2017.