Needham & Company Maintain Hold on Electro Scientific Industries (ESIO) Following Q4

Needham & Company maintains their Hold rating on Electro Scientific Industries (NASDAQ: ESIO), following an encouraging year end. ESIO posted a revenue of $37.6M, above the midpoint of prior guidance of $32M-$40M and ahead of consensus $36M. Gross margins came out stronger than expected at 40.7%, above 37.2% estimates. The non-GAAP loss totaled $0.21/share, which was better than guidance, compared to $0.27 loss estimate.

Needham & Company analyst, James Ricchiuti, commented on ESIO, saying, "ESIO after the close posted better than expected FQ4 results and registered solid bookings. ESIO enters F16 with improving demand across several of its markets and a number of promising new products that could add incrementally to revenues. Guidance for FQ1 was in line with consensus, and management said it was comfortable with consensus expectations for ~20% growth in F16. We regard the performance and guidance as encouraging and believe the company's turnaround could gather momentum in F16. We are maintaining our Hold rating for now and believe downside risk in the shares is limited at current levels."

For an analyst ratings summary and ratings history on Electro Scientific Industries click here. For more ratings news on Electro Scientific Industries click here.

Shares of Electro Scientific Industries closed at $5.60 yesterday.

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