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.