AVX reported net income of $46.5 million or 27 cents a share, for its fiscal 2009 fourth quarter ended on March 31, edging Wall Street's average analysts' estimate by a penny. In the same period a year earlier, the company had reported a net loss of $1.8 million, reflecting special environmental and restructuring charges. Revenue rose 35% year-over-year to $367 million in the latest quarter, a performance that CEO John Gilbertson attributed to "improvement in demand levels as well as inventory replenishment in most markets."
After paying quarterly dividends of 4 cents a share over the previous three years, AVX increased its quarterly payout to 4.5 cents a share on June 2. That puts the yield at around 1.35%, based on Friday's closing price of $13.36. The company had no debt at the end of March.Matthew Sheerin of Thomas Weisel Partners has a "Neutral" rating on the shares. With the company appearing to fire on all cylinders and having $5.36 in cash per share as of March 31, Sheerin's trepidation centers on a possible correction in market demand. He says that "if orders improved much more from here, we believe the capacitor maker would likely have trouble filling them." Not a bad problem to have, but the shares have pulled back 13% since the Thomas Weisel report was published on April 26.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV