Brooks Automation Up to Strong Buy - Analyst Blog

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Zacks Investment Research upgraded Brooks Automation, Inc. (BRKS) to a Zacks Rank #1 (Strong Buy) on Jul 10, 2013.

Why the Upgrade?

Shares of Brooks Automation have risen by 7.96% since the company reported its second quarter of fiscal 2013 (ended Mar 31) results on May 9. Adjusted earnings per share were 1 cent below 20 cents earned in the year-ago quarter but an improvement over a 6 cent loss in the previous quarter. Also, the results surpassed the Zacks Consensus Estimate of a 3 cent loss per share by 133.3%.

Sequentially, revenue grew 19%, reflecting soaring demand for front end semiconductor products. Order bookings stood at $121.3 million, up 31% sequentially. Talking of margins, adjusted gross margin in the quarter improved 20 basis points sequentially and came in at 32.1%.

For fiscal 2013, management of Brooks Automation anticipates revenue to be within the $116-$124 million range and non-GAAP earnings per share to be within the 1 cent-5 cents range. At mid points, revenue guidance reflects a 2.6% sequential growth while earnings guidance reflects 200% sequential growth.

In the last 60 days, the Zacks Consensus Estimate for Brooks Automation has gone up by 10.0% to 11 cents for fiscal 2013 and increased 1.4% to 71 cents for fiscal 2014. Also, the company had positive earnings surprise in three out of four trailing quarters with an average of 113.1%.

Others Stocks to Consider:

Brooks Automation, Inc. is a $657 million company, operating in the semiconductor equipment and materials industry. Other stocks to watch out for in the industry are Cohu, Inc. (COHU), Intevac Inc. (IVAC) and Mattson Technology Inc. (MTSN), each with a Zacks Rank #2 (Buy).