Robbins & Myers Inc.

Robbins & Myers Inc. (RBN - Snapshot Report) share price has been surging since the company released its third-quarter earnings results on June 30 in which sales were up 17% from last year. This marks the 11th straight quarter that the company has been able to deliver earnings growth, an impressive accomplishment by any standard.

Robbins & Myers develops engineering equipment and systems for a number of industries worldwide. Two of the company's divisions are fluid management and process solutions. Robbins & Myers was founded in 1878, carries a market cap. of $1.66 billion and is headquartered in Dayton, Ohio.

Solid First-Quarter Results

Robbins and Myers made its shareholders happy on June 30 when the company reported excellent third-quarter results. Sales were up 17% from the same period last year, to $201 million. This produced earnings of 62 cents per share when excluding one-time items of 14 cents, safely ahead of analyst estimates by 4 cents.

This is a company that has been very good at surprising and beating analyst estimates over the last 4 quarters, having done so by an average of 7 cents, or 17.31%.

Guidance Raised

After the solid quarterly performance, Robbins went ahead and boosted its earnings guidance. The company now expects full-year 2008 earnings between $2.26 and $2.31, up from the previous range between $1.93 and $2.03. The analyst community is just a little more bullish, projecting full-year earnings of $2.32.

Strength Through Strategy

Robbins and Myers has done an excellent job of strategically re-aligning itself after suffering from certain operational and financial issues dating back to 2004. Its balance sheet is in great shape with $91.7 million in cash or convertibles, up 47% from the previous year. The company can also champion the fact that 60% of its revenue comes from international markets, which have proven to be bastions of stability as the domestic economy continues to suffer.

The Chart

Shares of RBN surged after the company's third-quarter earnings report hit the street, trading above $50 before settling slightly lower. Since then, shares have continued to pressure the high in an attempt to breakout, all the while, logging higher daily lows. This is called a wedge formation, and it is a bullish signal. Take a look at the formation below.