(MRO) - Consensus estimates have been on the rise for this quarter and next quarter, jumping 24.4% and 5.5%

Analysts' earnings expectations have been on the rise for Marathon Oil Corporation (MRO). The company recently announced a potential joint venture with The Andersons, Inc. (ANDE) in which the two firms would work together to develop ethanol plants. The Board of Directors increased its quarterly dividend by 21% in late-April. MRO's return on equity tops that of the industry average--33% compared to 27%. Full Analysis Marathon Oil Corporation is engaged in the worldwide exploration and production of crude oil and natural gas, as well as the domestic refining, marketing and transportation of petroleum products. On Apr 27, 2006, MRO posted first-quarter profits of $739 million, or $2.01 per share, versus $357 million, $1.02 per share in the prior-year period. Total worldwide oil and gas volumes averaged 376.8 MBOE/d, which represented a 12.8% increase when compared to the year earlier level. The company's average worldwide realized liquids and natural gas prices were $50.16 per barrel and $6.44 per thousand cubic feet, representing year-over-year gains of 29.2% and 40%, respectively. On a down note, first-quarter EPS missed the Street's estimate. Consensus estimates have been on the rise for this quarter and next quarter, jumping 24.4% and 5.5%, respectively, over the past 60 days. Profit forecasts for this year and next are up 9.1% and 5.6%, respectively, over the same period of time. MRO announced on Jul 10, 2006, that it agreed with grains processor The Andersons, Inc. to explore a 50/50 joint venture in which the two companies would construct and operate a number of ethanol plants. Under the proposed deal, which is subject to approval by each company's board of directors and the execution of definitive agreements, Andersons would provide day-to-day management of the ethanol plants and supply the corn from which the fuel is made. An initial plant is projected to have annual production capacity of 110 million gallons of ethanol. Site selection is expected to be announced soon. On Apr 26, 2006, the company announced a 21% increase in its quarterly dividend, leading to a dividend of 40 cents per share. The last boost to its dividend occurred in the second quarter of 2005. The company is currently yielding 1.9% and has a five-year average dividend yield of 3.0%. MRO increased revenues and expanded gross margins for the past three years. The company saw its profits more than double in 2005. Earnings per share grew 16.1% over the past five years and are projected to grow 11.7% over the next 3-5 years. MRO's return on equity tops that of the industry average-33% compared to 27%. MRO is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 22.0% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. 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