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NN Inc. (NNBR - Snapshot Report) is expected to post triple digit earnings growth in 2010 after 2009 earnings were crushed by the global recession.

NN manufactures high precision bearing components, industrial plastic and rubber products and precision metal components. The Tennessee-based company has 11 manufacturing plants worldwide including in China.

It operates with 3 divisions: Metal Bearing Components, Plastic and Rubber Components and Precision Metal Components.

Rebound Continued in the Second Quarter

2009 was rough for NN. The company lost $1.43 per share. But in recent quarters, it has seen a sharp turnaround, which is reflective of the global economy.

Sales rose 62.3% to $92.7 million compared to the second quarter of 2009 with $40 million coming from simple increased demand for the company's products, especially in the industrial and automotive markets.

NN surprised on the Zacks Consensus Estimate by 42%. Earnings per share were 27 cents compared to the consensus of 19 cents.

The company lost 49 cents in the year ago period.

Outlook for the Second Half of 2010

NN is still bullish on the global economic recovery and that customer demand will remain strong for the second half of the year.

Historically, the third quarter is NN's weakest quarter due to seasonality, but in August the company was already seeing strong sales and was anticipating a third quarter with sales only slightly lower than the second quarter results (when normally it is 8% to 10% below.)

Given the strong third quarter, combined with the hot first half of the year, NN raised its full year revenue guidance to the range of $350 million to $360 million from $315 million to $335 million.

Zacks Consensus Estimates Jumped

After the big beat in the second quarter, analysts moved to raise estimates.

The 2010 Zacks Consensus jumped 43 cents to 73 cents per share in the last 60 days. This is expected earnings growth of 150.7% over 2009.

Analysts are optimistic the growth will continue into 2011. In the last 2 months, the 2011 consensus leapt to 90 cents from 63 cents.

This is another 24% earnings growth.

NN is expected to report third quarter results on Nov 4.

NN Has Value Credentials

NN is pretty cheap compared to its peers. It is trading at just 11.3x forward estimates whereas its peers are at 19x.

Its price-to-book ratio is about 2.0 which is well-within the value parameters. It also has a low price-to-sales ratio of 0.4.

NN is a Zacks #1 Rank (strong buy) stock.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service. You can follow her at twitter.com/traceyryniec.

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