WEB NEWS GeoSpecial Notes
Removing AEIS from the GeoSpeicial List @ $13.25
Added to the GeoSpecial list @ $17.10
Catalyst : Stock had fallen on strong 2010 seocnd quarter financials that handily exceede analyst estimates.
Peak performance: Reached a high of $18.52 on August 2, 2010 .Current road block : Constant case of undelivering on guidance; Quarterly EPS volatility; One of the few U.S. GeoSpeical that has not panned out for our team
Current Price : $13.38
Comments & Business Outlook
FORT COLLINS, Colo.--(BUSINESS WIRE )--Advanced Energy Industries, Inc. (Nasdaq GM: AEIS) today announced financial results for the first quarter ended March 31, 2011.
The company posted first quarter sales of $137.7 million, operating income of 17.7%, and earnings of $0.43 per diluted share from continuing operations, compared to net income from continuing operations of $19.7 million or $0.45 per diluted share in the fourth quarter of 2010
"Advanced Energy had another quarter of solid financial and organizational performance. Our strategy to transition the company to a diversified business model paid dividends this quarter as increased shipments in our thin films business minimized the seasonality of our renewables business ," said Dr. Hans Betz, chief executive officer.
The Company anticipates second quarter 2011 results from continuing operations, to be within the following ranges:
Research
Advanced Energy Reported a strong 2010 second quarter on July 21, 2010:
Sales rose 213.8% to $100.11 million. EPS was $0.26 per diluted share, compared to $0.11 per diluted share in the first quarter of 2010. In the same period a year ago, net loss was $0.38 per share.
Comments were very bullish and indicate that strength in AEIS's business will continue:
“We had an outstanding second quarter, with $154 million in bookings and $115 million in revenue, including PV Powered and the flow business. As our semiconductor revenues continued to grow, the semiconductor industry demonstrated its momentum again this quarter,” said Dr. Hans Betz, chief executive officer.
"Our recent acquisition of PV Powered contributed significantly to our higher inverter revenues and backlog, which we anticipate will provide momentum for the second half of 2010. PV Powered also contributed to our bottom line, delivering a profitable second quarter ahead of expectations and making the acquisition immediately accretive. The addition of this excellent team and product line to our Solaron inverter business positions us to forge ahead and take the leading position in the US market for inverters and expand worldwide.”
"Additionally, today we announced that we are divesting our flow business. We see this move as a crucial part of our corporate strategy to focus the company on becoming the market leader in power conversion and capitalize on future growth opportunities.” Business Wire (July 21, 2010)
The Company anticipates third quarter 2010 results from continuing operations, without revenues from the flow business, to be within the following ranges:
AEIS reported a loss in last years second quarter.
The stock has popped from about $14.00 to $17.42 since the release of its financial results and has a trailing P/E of over 80 . However, based on 2011 fully taxed EPS estimates of $1.55 and a P/E of 15 investors may bid the stock up to $23.21 . We are hoping for a pullback to establish an entry point, but may nibble here.
