Benchmark Cuts Price Target on American Science & Engineering (ASEI), Poor Booking

Benchmark is reaffirming its Hold rating on shares of American Science & Engineering Inc. (NASDAQ: ASEI), but is cutting its price target from $90 to $80 ahead of the company's Q1 2011 results.

The company is expected to report its Q1 earnings on August 4 following the close of the market. The firm is forecasting that ASEI will report disappointing Q1 results due to slow bookings and high margin expectations.

Benchmark is currently estimating sales of $59 million and EPS of $0.89 for the quarter, below the consensus of $61 million and $0.98. The firm notes that the consensus estimates indicate roughly a 22 percent operating margin.

An analyst at Benchmark comments, "Although we like AS&E’s long-term growth prospects in the early stage cargo/vehicle inspection market, we remain cautious ahead of the quarter. We believe AS&E’s pipelines might be slowing due to U.S. policy shifts and budget uncertainty and believe some international opportunities could be delayed due to Middle East political turmoil."

Management announced less than $5 million in booking during the quarter, well below the $77 million in which they reported a year ago.

The firm is estimating EPS and sales for fiscal 2012 of $5.00 and $298 million.

For more ratings news on American Science & Engineering Inc. click here and for the rating history of American Science & Engineering Inc. click here.

Shares of American Science & Engineering Inc. closed at $81.13 yesterday.

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