Flowserve's (FLS) latest earnings were simply stunning. The company flattened Wall Street's expectations. FLS' first-quarter earnings rose 159.3% to $1.53 per share compared with 59 cents per share last year. The Street was looking for 94 cents per share. Sales rose 23.6% to $993.3 million.

I was pleased to see Flowserve's gross margins increase to 34.8%. Even better, Flowserve raised its 2008 EPS guidance well above analysts' forecasts to between $5.90 and $6.20. The company's previous EPS guidance was between $5.10 and $5.40.