Robbins & Myers Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Robbins & Myers (NYS: RBN) , an equipment manufacturer for the oil and gas sector, are gushing higher by 10.5% today after the company reported better-than-expected second-quarter results.
So what: For the quarter, Robbins & Myers earned $0.84 on a 39% jump in revenue to $255.9 million. This easily trounced Wall Street's expectations for $0.75 in EPS and sales of $238.8 million. Its second-quarter profit also nearly tripled the $0.32 it earned in the year-ago period. Citing strong demand from the energy sector, the company highlighted its acquisition of T-3 Energy Systems as the primary growth driver in its bottom-line results.
Now what: In addition to beating in the current quarter, Robbins & Myers also upped its full-year guidance to a range of $3.40-$3.60 from its previous guidance of $3.00-$3.20. With oil staying easily above $100 per barrel, the need for the company's products seems to be relatively unaffected by decade-low natural gas prices. It's very likely this recent strength in earnings will continue and the company still boasts an attractive valuation. I'll be adding it to my watchlist.
Craving more input? Start by adding Robbins & Myers to your free and personalized watchlist so you can keep up on the latest news with the company.
At the time this article was published Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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