Dresser-Rand Group Inc.

Dresser-Rand Group Inc. (DRC - Snapshot Report) recently posted second-quarter earnings of 74 cents per share, outpacing the year-prior 55 cents and exceeding the Zacks Consensus Estimate by 28%.

Company Description

Dresser-Rand Group manufactures centrifugal and reciprocating compressors, steam and gas turbines, expanders, portable ventilators and control systems at facilities in the United States, France, United Kingdom, Germany, Norway, India and China for the oil and petrochemical industries around the world. The company can trace its roots back to 1840.

Strong Second Quarter Results

The company recently posted second-quarter earnings of 74 cents per share, outpacing the year-prior 55 cents and exceeding the Zacks Consensus Estimate by 28%. Total revenues of $606.1 million came in 12% ahead of the year-prior result.

Vincent R. Volpe Jr., President and Chief Executive Officer, called it a solid quarter with strong top line and bottom line growth, adding that there was improvement in the new units segment with bookings up sequentially from $109 million in the first quarter 2009 to $169 million in the second quarter. “While there is still a ways to go before we get back to 2008 bookings levels, we continue to see a steady flow of inquiries and expect our full year guidance of $700 million to $1.1 billion will be met,” said Volpe.

Bullish Forecasts

Analysts polled by Zacks are upbeat on earnings. The full-year Zacks Consensus Estimate of $2.51 per share was increased from last month’s $2.42.

For 2010, analysts polled by Zacks are projecting earnings of $2.18 per share, versus last month’s $2.15.

Value Fundamentals

Dresser-Rand Group is a Zacks #1 Rank (strong buy) stock. It is trading with a forward P/E of 12. It has a price-to-book of 2.9. The company also has an outstanding return on equity (ROE) of 27.6%, more than doubling the industry average of $12.5.

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