Robbins & Myers, Inc. – Momentum |
Robbins & Myers, Inc. (RBN) recently jumped out of an extended period of consolidation and into a new all-time high after reporting solid Q1 results that met expectations. Estimates have since risen, providing more momentum for this Zacks #1 rank stock.
Company Description
Robbins & Myers, together with its subsidiaries, produces industrial goods like fluid management systems and processing solutions for a wide range of industries worldwide. The company was founded in 1878 and has a market cap of $2.5 billion.
RBN saw big gains from September to February as the overall market posted an impressive 25% gain. But shares recently emerged from a multi-month consolidation pattern to hit a new all-time high after reporting another solid quarter.
First-Quarter Results
When including the company's acquisition of T-3, revenue was up 42% to $170. But when including T-3, sales almost doubled to $237 million. Earnings were directly in line with expectations at 53 cents, where the company has an average earnings surprise of 33% over the last four quarters.
Robbins' Fluid Management segment led the way with an impressive 43% increase in sales to $181 million. Process Solutions revenue was up 42% to $57 million. Both numbers include the acquisition of T-3.
Financial Profile
RBN further strengthened its already great balance sheet, with cash and short-term investments up $49 million to $172 million against no long-term debt.
Estimates
We saw some nice movement in estimates off the good quarter, with the current year adding 19 cents to $2.35. The next-year estimate is pegged at $2.96, a bullish 26% growth projection.
Valuation
But in spite of recent gains, the valuation picture still looks solid, with a PEG ratio of .88, safely below the benchmark for value of 1.
12-Month Chart
On the chart, RBN recently emerged from a multi-month consolidation pattern to jump in to a new all-time high. Take a look below.
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