The share price of Matrix Composites & Engineering responded strongly following the release of its 2009-10 result. This isn’t surprising given that the company’s net profit of $18.2 million was 139 per cent ahead of prospectus forecasts. Furthermore, the company’s earnings per share of 31 cents were well ahead of consensus forecasts of 26.8 cents.

The fact that analysts are predicting earnings per share growth of 60 per cent in 2010-11 suggests that despite today’s share price increase there could be more upside to come. If you add that sort of growth to the company’s 2009-10 result, it translates into earnings per share of nearly 50 cents.