Nanometrics (NANO - Snapshot Report) is a $430 million technology provider that helps semiconductor companies make better chips and the stock is back to Zacks #1 Rank after a big earnings beat.

More specifically, NANO is a leader in the design, manufacture, marketing, and support of process monitoring systems for the semiconductor, data storage, and flat panel display industries.

The company's primary products are thin film measurement/analysis and overlay metrology systems. These products are used to analyze manufacturing quality at critical steps in production and to provide feedback for production control or notification of out-of-control processes.

Below is how the company describes their evolving expertise. I should first note the definition of nanometer, abbreviated with the international symbol "nm"...

A nanometer is a unit of spatial measurement that is 10-9 meter, or one billionth of a meter.

Smaller, faster, more sophisticated chips. At 22nm and below, novel designs featuring 3D multi-gate transistors are helping to extend the roadmap for smaller devices. But moving to smaller technology nodes with these new structures presents manufacturing challenges.

Nanometrics offers a suite of process control tools to help manufacturers as they shrink designs to sub 30nm nodes and develop robust solutions for vertical IC integration.

Outlook Spurs Analysts to Raise Estimates

In late April, Nanometrics reported first quarter earnings results that exceeded consensus expectations and also delivered an outlook that was a positive surprise.

The company also provided color on its overall trends citing that it expects “a stronger second half compared to the first half.” Here were some of the highlights of the report driving this projection..

Record 3D NAND Sales and Bookings. An accelerating customer ramp and tool-of-record positions at every major 3D-NAND manufacturer led to a record 3D-NAND sales quarter, exceeding the prior record quarter by approximately 70%. As previously announced, the first quarter was also a record for 3D-NAND bookings, both in aggregate and for three customers individually.

Successful Launch of Newest Flagship System. The company's next-generation Atlas III launched in the first quarter, with multiple shipments to a leading memory customer. Additional systems are scheduled to ship in the second quarter to multiple leading customers in advanced foundry, DRAM and 3D-NAND.

Analysts responded by raising the full-year 2016 EPS consensus estimate to $1.03 from $0.68, a 51.5% jump and equating to 295% EPS growth for the year.

While 2017 estimates only rose 11% from $1.10 to $1.22, for 18% EPS growth, this company has an impressive record of beating the analysts with the last 4 quarters averaging earnings surprises of over 100%.

This is one company to definitely have on a watch list. As analysts get more visibility about customer and sales growth for NANO, my guess is that those 2017 estimates will be rising more. Keep your on the Zacks Rank and our detailed EPS tables for NANO to stay on top of the story.