Accuride Corporation’s second-quarter earnings report inspired a 12% increase in the stock price by the close of the market Monday afternoon and appears to be a harbinger of good things to come.

Accuride (NYSE: ACW) reported that second-quarter adjusted EBITDA improved year-over-year to $23.2 million, or 12.8 percent of net sales, compared to $17.8 million, or 9.9 percent of net sales, in the same quarter of 2013.

The stock price climbed from 4.97 to 5.59 by the end of closing—its highest level since the end of May.

Optimism already had been expressed by in a post, “Accuride (ACW) Sees Hammer Chart Pattern: Time to Buy? - Tale of the Tape.”

Earnings estimates have been rising for this company, even despite the sluggish trading lately. In just the past 60 days alone 2 estimates have gone higher, compared to none lower, while the consensus estimate has also moved in the right direction. Estimates have actually risen so much that the stock now has a Zacks Rank #2 (Buy) suggesting this relatively unloved stock could be due for a breakout soon.

The company reported net income from continuing operations of $5.1 million, or $0.11 per share, during the quarter, compared to a 2013 second-quarter net loss of $5.1 million, or $0.11 per share.  Net income in second quarter of 2014 included a benefit of $2.2 million, or 0.04 per share, related to Mexico tax reform and a reduction in our long-term income tax payable.  

President and CEO Rick Dauch said, “We are pleased with our overall results for the quarter, which again demonstrated the return on our strategic investments to ‘Fix & Grow’ Accuride in anticipation of the commercial vehicle industry recovery now underway. 

Dauch is confident because commercial vehicle OEMs further increased production in the second quarter in line with net order growth within each segment Accuride serves.  Carriers continue to replace older equipment and expand fleets to meet rising freight demand.  Class 8 net orders for the entire quarter increased 19 percent year-over-year for the strongest showing in eight years.  Class 5-7 and trailer net orders also improved, with year-over-year increases of 7 percent and 35 percent, respectively.