Global Hunter Updates Estimates On Robbins & Myers

According to Global Hunter Securities, Robbins & Myers' RBN estimates are updated as seasonal slowdown never happened. Global Hunter reported that it is increasing its FQ2 2011 estimates to $0.50 from $0.42 as the seasonal slowdown that generally occurs in US drilling did not happen. “As our estimates are increasing by 8c in FQ2, our full FY11 estimates increase by at least that amount. However, we are not updating at this time as we await new SG&A, DD&A and tax rate guidance post acquisition that will drive our forecast. At this point we feel we have been conservative on those estimates by adding $18MM in additional G&A annually, doubling DD&A and using a 36% tax rate (due to TTES U.S. focus) vs. a 32.9% average for FY2010 and 25.5% average for FY2009. Therefore, we expect an upward bias after the report and earnings call and would be buyers ahead of the report.” Robbins & Myers closed yesterday at $45.01.