Robbins & Myers Beats Q1, Hikes Forecast and Dividend

Robbins & Myers, Inc. (RBN) posted first quarter results that trampled Wall Street’s expectations this morning. The company also boosted its earnings guidance significantly, and gave shareholders a raise for the fifth consecutive year.

The supplier of engineered equipment and systems reported earnings of $0.44 per share on $164 million in revenue, while analysts were expecting a profit of just $0.33 per share and only $149.6 million in sales. Net income more than doubled compared to the same period last year, while sales rose 27%.

Looking ahead, the company expects to earn $0.40-$0.50 per share in its second quarter, well ahead of the $0.34 EPS expected by Wall Street. For the full year, earnings guidance was given a huge upgrade to a range of $1.85-$2.05 per share, much higher than the previous range of $1.45-$1.65 per share and the current analyst consensus of $1.60 per share.

The board of directors approved an increase in the quarterly cash dividend to $0.045 per share, a 5.9% improvement over the $0.0425 paid each of the last four quarters. The board has now approved a dividend increase in each of the last five years, boosting its payout by a total of 64% over that span. The first dividend under the new rate carries and ex-dividend date of January 19.

Shares of RBN took a big leap to $38.09 (+7.21%) in pre-market trading, where they now carry a 0.47% dividend yield.

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