So I’m wondering: If Iraq's "ours" now (under the “you break it, you bought it” axiom, if in no other sense), does it still belong to the Axis of Evil?
No matter, I suppose. In today's column, it's not the Axis of Evil concerning us, but the Axis of Good. Or more precisely, Motley Fool Stock Advisor recommendation Axsys Technologies
- 40% sales growth in the fiscal second quarter.
- 53% better profits than last year ($0.56 per share from continuing operations, or $0.55 net of a small loss from its discontinued AST Bearings business).
- Promises of more growth to come.
Gross margins at Asxys zoomed ahead around 220 basis points, and operating margins improved by 170 basis points at the operating-margins level. So far this year, Axsys is pulling down better than 15% operating margins, superior to tiny rival Excel Technology
Axsys expects more of the same going forward: "24% backlog growth in the first half of the year." The company told investors to expect close to $240 million by the time this fiscal year winds up, and something like $2.12 per share in profits.
Incidentally, investors in Textron
About the only bad news I found in the report ... wasn't actually in the report. Rather, it was found in the cash flow statement in the company’s 10-Q filing with the SEC.
And what did it say? That as contrasted with the $2.6 million in free cash flow generated through the first half of 2007, Axsys has a negative free cash flow of nearly $9 million so far this year. That definitely gives Axsys room for improvement in two respects come Q3: First, get that free cash flowing again. Second, tell us about it straight.
Axsys Technologies is a Motley Fool Stock Advisor pick. Try this market-beating publication free for 30 days.