Why American Sciences & Engineering's Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of technology company American Science & Engineering (NAS: ASEI) rose 13% today after the it reported earnings.

So what: Revenue fell 7% from last year to $47.3 million and net income fell to $4.2 million, or $0.47 per share. Despite the decline from last year the EPS number was $0.05 better than Wall Street expected. The company also announced a $35 million share repurchase program.

Now what: I'm concerned about the declining revenue and earnings, despite the fact both were better than estimates. For the current fiscal year analysts are expecting EPS to decline to $2.28, meaning that shares are still trading at 27 times earnings. That's a lot to pay when earnings are declining and will keep me from buying the stock today.

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The article Why American Sciences & Engineering's Shares Jumped originally appeared on Fool.com.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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