Advanced Energy Industries (NASDAQ:AEIS), which manufactures power conversion systems, reported on Monday after the markets closed better-than-expected fourth quarter results. However, the markets reacted negatively.
As of 12:23 pm EST, the company’s shares are down 7.5%.
The fall may have been because analysts were looking for more upside to the company’s first quarter outlook, according to financial website TheStreet.com.
For the fourth quarter, the Colorado-based company earned a net income of $31.4 million, or 45 cents per diluted share, up from $1.5 million, or 4 cents per diluted share for the year-ago period. Revenues more than doubled to $148.7 million from $58 million, helped by strong sales in the renewable inverter segment.
Analysts polled by Thomson Reuters expected the company to earn 39 cents a share on revenues of $145 million.
Sales from the inverter segment rose 38% quarter-to-quarter while sales of the thin film segment grew 5.3%.
Meanwhile, sales from the semiconductor segment fell 18.6% and service revenues held steady.
Bookings for the fourth quarter were $113.3 million, down 29% sequentially.
Gross margin for the fourth quarter increased sequentially to 43.6% from 43.1% in the third quarter, mainly due to a decline in warranty costs.
At quarter end, the company had $140.6 million of cash and investments.
For the first quarter of fiscal 2011, the company expects sales to be in the range of $132 million to $142 million.
Earnings per share are expected to range from 32 cents a share to 38 cents a share.