The numbers: Fiscal second-quarter net income decreased 22% to $94 million and earnings per share declined a more modest 5% to 19 cents, helped by a lower share count. Revenue declined 4% to $1.7 billion. Nidec's gross margin increased from 28% to 30%, but its operating margin was unchanged at 12%. Nidec has a stable financial position, evident in its quick ratio of 1.1 and debt-to-equity ratio of 0.4.
The stock: We rate Nidec "buy." The stock has doubled this year, beating major U.S. indices and earning a performance score of 9.2 out of 10. Although electronic components makers suffered during 2008, Nidec remained profitable. The shares command a premium, relative to peers, based on trailing earnings, book value and cash flow. But growth prospects and financial strength are redeeming features.
-- Reported by Jake Lynch in Boston.