Bucyrus International Inc. (BUCY) is pressuring a short-term level of resistance just above $55 after surging on a strong Q3 earnings beat from Oct 23.
Company Description
Bucyrus International, Inc. designs and manufactures mining equipment and machinery worldwide. The company was founded in 1880 and has a market cap of $3.98 billion.
Third-Quarter Results
Shares of BUCY got a nice boost after the company reported better than expected third-quarter results on Oct 23. Sales were up 5% from last year to $675.8 million. Earnings also came in strong at $1.21, 35 cents ahead of the Zacks Consensus Estimate. The company has beat in each of the last 3 quarters by an average of 27%.
Bucyrus noted that its results were driven by a 16% increase in its underground mining division, with sales improving to $216 million.
Estimates Advance
The good quarter sent estimates higher, with the current year adding 37 cents to $3.89. Based on this earnings projection, shares of Bucyrus trade with a P/E multiple of 13.5X, a discount to the overall market.
The Chart
Shares of BUCY are up big this year after jumping higher with the overall market. More recently, BUCY has been pressuring a short-term level of resistance just above $54, take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Surprise Trader Service. Zacks Investment Research
