Sun Hydraulics' latest earnings helped its stock reach a new 52-week high.
SARASOTA — Investors are loving the latest news from Sarasota-based Sun Hyrdaulics: sales are up 60%; quarterly profits increased nearly 200% over the year; and CEO Allen Carlson is saying his company might need to increase its manufacturing capacity to meet demand.
The result is shares of Sun Hydraulics stock (symbol: SNHY) reached a new 52-week high this morning, momentarily touching a per-share value of $54.34. Based on the number of shares of Sun stock in the market, that price makes the total value of Sun Hydraulics' stock nearly $1 billion.
"The capital goods environment has rebounded and is in a strong growth phase right now," Carlson said in a prepared statement. “Sun is enjoying solid top line growth, which is translating into great operational results.”
That growth may require Sun to grow its business. In Carlson's words: “We recognize that additional capacity may be required as the expansion of this business cycle and our market share gains continue.”
Sun's first quarter operating income nearly tripled over the year, from $5 million in 2010 to $13.9 million this year. Net sales were $50.7 million, up from $31.6 million, and profits were $9.7 million, up from $3.3 million.
Sun has given back some of the gains in share price it experienced in early trading, but if it maintains a per-share price near the $52 mark, the company's stock will be worth roughly $885 million.