Brooks Automation shares rise on strong 3rd-quarter guidance
By APTuesday, July 13, 2010
Brooks Automation shares jump on strong outlook
NEW YORK — Shares of Brooks Automation Inc. jumped Tuesday after the chip equipment maker said it expects fiscal third and fourth-quarter results to surpass Wall Street’s expectations.
THE SPARK: On Monday, Brooks raised its earnings outlook for the quarter ended June 30 a profit of 22 cents to 24 cents per share on revenue of $156 million to $157 million.
That’s well above the 19 cents per share and $152.7 million that analysts polled by Thomson Reuters predict.
The company is scheduled to report earnings on Aug. 5. It also expects earnings and revenue to rise sequentially in the fourth quarter.
THE BIG PICTURE: Many chip makers are seeing increased demand as the economy improves and businesses and customers resume spending on technology products.
THE ANALYSIS: Standard & Poor’s Equity analyst Angelo Zino raised his rating on Brooks to “Hold” from “Sell.”
“We think greater memory spending is driving demand from semiconductor (manufacturing) customers and believe inventory levels across the supply chain remain at healthy levels,” the analyst wrote in a note to investors.
SHARE ACTION: Shares of the Chelmsford, Mass., company rose 89 cents, or 11 percent, to $8.91 in afternoon trading. The stock has traded in the 52-week range of $4.20 and $10.82.
