Specialty engineering company Robbins & Myers (RBN) gained 20% yesterday on its fiscal third quarter results (see conference call transcript). The company, which makes fluid processing products, among other specialized equipment, doubled its earnings year-over-year, from $13.2 million last year to $26.5 million this year (or from $0.39 per share to $0.76 per share).
Sales grew 17% compared to the third quarter of 2007. Robbins & Myers also saw higher earnings when obligations expired on two product lines the company sold a couple of years ago. And the company increased its full-year guidance from $1.93-$2.03 per share to $2.26-$2.31 per share.
Both the quarterly results and the full fiscal year guidance were a surprise to analysts, who predicted a modest rise in the quarter and in full-year guidance from the company. And with the dramatic earnings increase, RBN stock is up 20% as of 1 p.m. EST.
According to the company, the fiscal fourth quarter won’t see earnings increase as much as they did in the third, but investors can look forward to $0.62-$0.67 earnings per share in the quarter.