(AXYS) – Axsys Technologies – income grew more than 60% from last year

Axsys Technologies, Inc. (AXYS) share price is up after the company reported strong second-quarter results on July 22 in which income grew more than 60% from last year. Estimates are on the rise and this stock continues to pressure a key, short-term level of resistance.

Axsys Technologies, Inc. designs and manufactures precision optical solutions for defense, aerospace, homeland security, and commercial applications. The company has a market cap. of $790 million and is headquartered in Rocky Hill, Connecticut.

An Excellent Quarter

Axsys stepped-up and reported excellent second-quarter results on July 22. Revenue was up 40% from last year to $60.3 million. Net income was up even more, totaling $6.2 million, up from $3.8 million last year. This produced earnings of 54 cents per share, outpacing analyst expectations of 48 cents per share.

A History of Surprising

This is the fourth time that Axysis has surprised and beaten analyst estimates in the last 4 quarters, having done so by an average of 5 cents, or 13.5%.

The company noted that its gross margin improved to 34.4% from 32.8% while its operating margin climbed to 16.2% from 13.9% last year. Axysis also said that its jump in sales was driven by strong demand for infrared cameras and lenses.

Estimates Are Up

After the impressive second-quarter results, analyst lifted their earnings guidance. The current-year estimate is now $2.05, up from $1.92 per share 30 days ago. Based upon this earnings projection, this is not a cheap stock, trading with a forward P/E multiple of more than 35X.

The Chart

Shares of AXYS have been rallying since bottoming out around $50 in early July, recently topping off above $70. The up trend that began when this stock initiated its upward ascent is still in play, and continues to support prices. A short-term level of resistance has developed at $74.

Content Courtesy: Zacks Investment Research

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