Electro Scientific Industries Shares Shoot Up Despite 3rd Quarter Loss
Warrior Trading | Feb 02, 2017 08:36AM ET
Electro Scientific Industries Inc (NASDAQ:ESIO)
Electro Scientific Industries, Inc.(ESIO), a global laser-based manufacturing solutions company yesterday reported their fiscal third quarter 2017 financial results. Electro reported a loss of $9.7 million in the third quarter. Electro reported third quarter adjusted earnings of a loss of $0.23 per share. Electro reported third quarter revenues of $33.8 million.
h3 Electro Scientific Industries, Inc. CEO’s Comments/h3h3 ESIO Technical Analysis/h3Michael Burger, president and CEO of ESI, said, “We delivered top and bottom line results at the high end of our expectations in the third quarter, as revenues grew 14% sequentially. We also made progress on new product evaluation by customers, the integration of our Visicon acquisition, and repositioning our Micromachining product line for future success.” Burger concluded, “I am encouraged by our orders performance this quarter. We expect to again see strong seasonal demand for our industry-leading flex products. We also made some progress toward early qualification and customer penetration with our new products, but there is more work to do. As we look forward we are focused on improving execution, accelerating new product adoption, and increasing consistency of earnings over time.” Globe Newswire
ESIO opened trading yesterday at $6.10 which was up from the previous day’s trading close of $6.03. Shares closed trading yesterday at $6.57 and spiked up after market to $7.25, equivalent to a 10% increase from the closing price. Taking a look at the daily chart we can see that the last time ESIO traded above these levels we have to go all the way back to May 11th, 2016 when it traded at highs $7.32.
Taking a closer look at the daily chart we can see that before the spike up ESIO had already been in an overall upward trend dating back to November 3rd, 2016 when it traded at $4.62. ESIO has a float of 29.64 million shares and traded 1.45 times the normal daily trading volume on Wednesday. For trading purposes, I would like to see ESIO open trading on Thursday above $7.00 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.15 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
h3 Company Profile/h3
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Electro Scientific Industries, Inc., together with its subsidiaries, supplies laser-based manufacturing solutions for the microtechnology industry worldwide. The company operates in two segments, Component Processing and Micromachining. The Component Processing segment provides interconnect products, including laser via drilling systems for electrical interconnect applications; micro via drilling technology that addresses the changing applications in IC packages, multichip modules, and HDI circuit boards; and ultraviolet laser processing systems comprising single-beam and multi-beam systems. It also offers wafer marking equipment for use in serialization and wafer identification; wafer and circuit trim tools, and liquid crystal display (LCD) repair tools; and laser LCD repair systems to enhance the manufacture of flat panel displays.
In addition, this segment provides component manufacturing products that combine high-speed small parts handling technology with real-time control systems to provide inspection solutions for manufacturers of multilayer ceramic capacitors and other passive components. The Micromachining segment offers micromachining systems, such as platforms for precision drilling, scribing, cutting, etching, routing, and marking various materials and devices; and laser systems to manufacturers of end devices for marking, cutting, and welding applications. The company sells its products through direct sales and service offices, value-added resellers, and independent representatives. Electro Scientific Industries, Inc. was founded in 1944 and is headquartered in Portland, Oregon.
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