The name Rofin-Sinar
The manufacturer of industrial laser products just completed its 2004 fiscal year with a 25% gain in sales and a 112% gain in net income -- both record highs. The fourth quarter's net income increased 192% to $0.92 a share, trouncing analyst estimates of $0.50 a share.
Net sales were up a mere 1% for macro applications (45% of fourth-quarter sales). This market, where you would find the company's lasers welding major body parts for General Motors
In marking and micro applications (55% of sales), where the company's products are used by the likes of United Technologies
The company's $72.8 million backlog of orders indicates 2005 will be off to a strong start.
Following the company's secondary offering earlier this year, some of the cash was used to acquire two laser manufacturers and increase its ownership in another. Analysts have yet to recalculate 2005 earnings based on this quarter's blowout performance and these acquisitions, but all signs point to continued strong performance.
The company stock, trading at 15 times earnings, sells at a significant discount compared with competitors Excel
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Fool contributor W.D. Crotty does not own stock in any of the companies mentioned.