Nanometrics (NANO) crushed earnings expectations and continues to improve at a break-neck pace.Company Description
Nanometrics makes control metrology systems used by semiconductor, LED, data storage and solar photovoltaic manufacturers. The systems are used to improve yields, productivity and lower costs.
Revenues Nearly Triple
Nanometrics posted its first-quarter results on May 6, which included revenues of $37.2 million, up 41% sequentially and 270% year-over-year. The gross margin improved 460 bps since last quarter to 55.3%. A year ago that margin was at just 28.3%.
Net income surged to $5.9 million, up from a loss of $0.3 million last quarter and a $10.6 million loss a year ago. Earnings broke down to 28 cents per share, 17 cents higher than the Zacks Consensus Estimate.
Estimates Pop
Given the earnings news and the bullish comments that followed, analysts were quick to raise full-year estimates. The Zacks Consensus Estimate for 2010 almost doubled, from 60 cents to $1.18.
Next year's forecasts are averaging $1.28, up 28 cents. Compare these levels to the 71 cents Nanometrics lost in 2009.
Enticing ValuationsNanometrics is a great turnaround story and is also providing investors with a good value. Shares are going for just 10 times forward earnings. Factor in that impressive growth and you get a PEG ratio of 0.5.
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