(OMM) - met or topped analysts' earnings expectations in the past seven quarters

OMI Corporation (OMM), a Zacks #1 Rank stock, met or exceeded the Street's earnings estimate for seven consecutive quarters. Analysts' profit forecasts have been trending higher. The Board of Directors at OMM recently declared a quarterly dividend of 10 cents per share and approved the repurchase of an additional $70 million of its common stock. The company has a price-to-book ratio of 1.8, compared to 3.8 for the market. Full Analysis OMI Corporation provides seaborne transportation services for crude oil and petroleum products in the international shipping markets. The company's customers include major independent and state-owned oil companies, major oil traders, government entities and various other entities. OMM met or topped analysts' earnings expectations in the past seven quarters. During this time frame the company surprised to the upside on six occasions by an average margin of 6.9%, and matched once. Earnings per share grew at a robust rate over the past five years—49.9%. Over the next 3-5 years, they are projected to grow at a 17% clip, compared to 16% for the industry. On Apr 24, 2006, OMM posted a 3.5% earnings surprise when it reported profits of $63.6 million, or 89 cents per share. When compared to the prior-year period, earnings were up four cents per share. Revenues increased 12.6% to $192.5 million, driven by more operating days and higher rates. Furthermore, global demand for oil was up about one million barrels per day over the prior year. The company is expected to release second-quarter results on Jul 26, 2006. Consensus estimates have been on the rise for this quarter and next quarter, jumping 12.1% and 31.6%, respectively, over the past 90 days. Three analysts revised their estimates upward for this quarter, while four did so for next quarter. Profit forecasts for this year and next are up 9.5% and 13.9%, respectively, over the same period of time. Five analysts revised their forecasts upward for this year and two followed in their footsteps for next year. On Jun 6, 2006, the Board of Directors declared a quarterly dividend of 10 cents per common share of stock. The company has a current dividend yield of 2.0% and a five-year average dividend yield of 0.79%. In late-April, the Board authorized the buyback of an additional $70 million of its common stock, bringing the total available for repurchase to approximately $100 million. OMM is currently trading at a valuation of 7.7x trailing 12-month earnings and at 8.1x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.2x trailing 12-month earnings and at 15.0x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.8, compared to the market's multiple of 3.8. OMM's return on equity tops that of the industry average—26% versus 17%. 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