(FED) - exceeded earnings estimates for four consecutive quarters, three of which registered surprises of more than 10%

FirstFed Financial Corp. (FED) has seen its earnings estimates rise dramatically. Over the past 60 days, this year's estimates have risen 12.5% to $6.28 per share, while next year's estimates have jumped 19.2% to $7.75 per share. The stock is attractively valued at 7.4x next year's estimates. Additionally, FED sports a return-on-equity of 19%, well above the industry's average of 9%. Full Analysis FirstFed Financial Corp. operates as the holding company for First Federal Bank of California that provides commercial banking services in California. The bank engages in generating deposits and originating loans. Its deposit products include passbook, money market, and checking accounts, as well as certificates of deposits. The bank's loan portfolio comprises adjustable mortgage, real estate residential, commercial, construction, and consumer loans. It also offers trust and insurance brokerage services. First-quarter earnings rose 67 percent, aided by higher net interest income and loan prepayment fees. Earnings increased to $31 million, or $1.83 per share, up from $18.5 million, or $1.10 per share, a year earlier. Net interest income increased to $67.1 million during the first quarter, up from $50.1 million during the first quarter of 2005. Other income, including income from loan servicing, retail office fees and other fees, more than doubled to $10.2 million from $4.5 million. The company has exceeded earnings estimates for four consecutive quarters, three of which registered surprises of more than 10%. Year-over-year earnings growth has accelerated to around 70% over the past few quarters. FED has minimal analyst coverage, but one analyst did raise his numbers for this year. Earnings estimates have been on the rise over the past 60 days. In that time period, this year's estimates have risen 12.5% to $6.28 per share, while next year's estimates have jumped 19.2% to $7.75 per share. The stock is attractively valued at 7.4x next year's estimates. Additionally, FED sports a return-on-equity of 19%, well above the industry's average of 9%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. Blog Home