Dresser-Rand Profits Increase 59%!

October 30, 2009

What an amazing earnings season this has been! One of my earnings picks for NavellierGrowth.com readers was Medifast Inc. (MED). The company does great things for people needing to lose weight, and the stock is a real gem. They reported a 21% earnings surprise and the stock shot up by as much as 17% on the news.

This is excellent news for the company, but it isn’t the only NavellierGrowth.com company that beat earnings this week. Dresser-Rand Group (DRC) was another stock that I targeted for a strong quarter. And the company didn’t disappoint.

DRC is in the oil and gas equipment business and this quarter the company increased revenue by 13% and saw profits skyrocket by 59%! Analysts were expecting 61 cents per share, but after looking at the company, I forecast the number to come in closer to 66 cents per share—boy was I wrong. I knew the company would do well, but really didn’t see the company reporting 91 cents per share! This represents a 49% earnings surprise and is excellent news for the company.

The stock was initially up about 5% on the news but has given some of that back today. I would have liked to see the market celebrate this achievement a bit more, but the profits will come to investors. This is a great company that should continue to post strong quarterly earnings reports.

Please check out my free Portfolio Grader tool each Monday so that you always know when to buy and sell companies like DRC.