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What: Shares of nanoscale tools designer FEI Co.
So what: Citing strong orders in its research and industry segment, FEI reported 27% year-over-year sales growth and nearly double last year's earnings. The growth trend is expected to continue into the fourth quarter, and gross margins are strong enough to surprise the company's own management.
Now what: FEI's order backlog is nearly three times the size of its quarterly sales, so sales will come in about as fast as the company can make, ship, and bill for its instruments. FEI has $7.69 of net cash per share on the balance sheet and is actively buying back senior notes to reduce both its debt balance and the diluted share count. What's not to love about this official Rule Breaker and five-star CAPS stock?
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Fool contributor Anders Bylund holds no position in any of the companies discussed here. FEI is a Motley Fool Rule Breakers selection. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.