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What: Shares of hydraulic valve and manifold maker Sun Hydraulics
So what: Driven by a 53% jump in sales, Sun Hydraulics posted a fourth-quarter profit of $6.3 million, or $0.37 per share, versus just $1.3 million, or $0.08 per share, in the same year-ago period. "Business activity in 2010 rebounded more quickly than we had anticipated," noted CEO Allen Carlson. "We have been able to keep up with the steadily increasing demand, while realizing substantial productivity improvements, thanks in large part to maintaining and investing in our workforce readiness throughout the downturn."
Now what: Sun Hydraulics fully expects that momentum to carry into 2011. With a "robust" macroeconomic outlook, management now sees first-quarter earnings per share of $0.50-$0.53, compared to $0.20 in the same period a year ago, on a 58% increase in sales. While the shares are flirting with new 52-week highs today, Sun Hydraulics has too many tailwinds working in its favor to ignore.
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