IPG Photonics (IPGP) and Amtech Systems (ASYS) - Zacks #1 Rank Top Performers

Besides being really cool, it appears that lasers can also be a pretty good investment. Take IPG Photonics Corporation (IPGP) as an example. This company was the top-performing Zacks #1 Rank on Wednesday by a wide margin.

IPGP increased by 10.08% today; the only company on the list to gain in the double digits. Volume surpassed 580,000 shares, compared to the daily average of nearly 380,000.

IPGP is the world leader in high-power fiber lasers and amplifiers for use in a wide range of applications, such as materials processing, telecom and medical.

IPG Photonics had a very strong 2010, underscored by 4 consecutive quarters with positive earnings surprises. Most recently, it announced fourth quarter earnings per share of 56 cents, which surpassed the Zacks Consensus Estimate by 3.7%. Revenue soared 86% to $101 million, thanks to demand across most geographies, product lines and end markets.

The company is expecting more of the same in the first quarter. It forecasted earnings per share between 37 cents and 44 cents for the period. The Zacks Consensus Estimate at the time (late February) was at 37 cents. Today, though, we are expecting 42 cents for the quarter, marking a gain of more than 13.5% from 30 days ago.

The past month has also seen sharp increases for annual EPS expectations. The Zacks Consensus Estimate for 2011 is $1.90 per share, up 8% in the past 30 days as 8 out of 11 total estimates were revised higher. Over the past 2 months, the guidance has advanced by more than 47%.

As for next year, the Zacks Consensus Estimate of $2.35 per share has moved upward by 7.8% in 30 days as 7 estimates out of 11 were revised higher. It has gained a cool 50% in the past 2 months. Also, the outlook for 2012 is currently anticipating earnings growth of around 24% over 2011.

One of the reasons for IPGP's solid quarter and subsequent estimate strength is, of course, China. Basically, China needs more of everything, and lasers are no exception. During the quarter, sales growth in China surged 256% from the previous year. Europe did pretty well too with sales gaining 92%.

IPG Photonics is part of the lasers – systems/components industry. There are 2 other names from this space on today's Zacks #1 Rank List: II-VI Inc. (IIVI) and Rofin-Sinar Technologies Inc. (RSTI).

Amtech Systems, Inc. (ASYS) only gained half as much as IPGP on Wednesday, but that was enough to be the runner up on the Zacks #1 Rank Top Performers List. Shares were up 5.08%.

ASYS is part of the electronic components – semiconductors industry. It is 1 of 5 companies from this space on the Zacks #1 Rank List today. The other 4 names are Atheros Communications (ATHR), Cabot Microelectronics Corporation (CCMP), OmniVision Technologies, Inc. (OVTI) and Spreadtrum Communications, Inc. (SPRD).

ASYS manufactures capital equipment, including silicon wafer handling automation, thermal processing equipment and related consumables used in fabricating solar cells and semiconductor devices.

You didn't think we'd get through a Top Performers article without mentioning solar, did you? Alternative energy names have been making a lot of noise at the top of the list recently, and ASYS recently explained why. Early this month, it announced that total solar orders this fiscal year have already surpassed the level for all of fiscal 2010.

It's not quite as impressive as it first seems though, since ASYS' fiscal year began on Oct 1, 2010, so it's more like half a year instead of only a quarter. But still, it has so far put together solar orders of $182 million, compared to $162 million for all of fiscal 2010. According to the company, it believes intense effort by its customers and the solar industry to increase cell efficiency will continue to drive demand for its superior diffusion technology.

The Zacks Consensus Estimate for this fiscal year is currently $2.20 per share, which is up 6.8% in the past 2 months. Meanwhile, the Zacks Consensus Estimate for next fiscal year is up 10.4% in that time to $2.55 per share, which also suggests year-over-year improvement of practically 16%.

Its fiscal first quarter included earnings per share of 52 cents, which surpassed the Zacks Consensus Estimate by more than 40%. It was also the fourth straight beat. Meanwhile, net revenue skyrocketed by 248% to $53.7 million. For more on this quarter, read Amtech Tops Consensus.

For the full fiscal year, Amtech Systems expects revenues to exceed $230 million, which would mark an improvement of more than 90% from fiscal 2010. Revenues for the fiscal second quarter are expected between $55 million and $60 million. In mid February, the company reiterated these expectations.

 
AMTEC SYSTEMS (ASYS): Free Stock Analysis Report
 
ATHEROS COMM (ATHR): Free Stock Analysis Report
 
CABOT MICROELEC (CCMP): Free Stock Analysis Report
 
II-VI INCORP (IIVI): Free Stock Analysis Report
 
IPG PHOTONICS (IPGP): Free Stock Analysis Report
 
OMNIVISION TECH (OVTI): Free Stock Analysis Report
 
ROFIN-SINAR (RSTI): Free Stock Analysis Report
 
SPREADTRUM-ADR (SPRD): Free Stock Analysis Report
 
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