(MNT) - posted first-quarter fiscal 2007 profits of 33 cents per share--beating the Street's estimate by an impressive 17.9%

Mentor Corporation (MNT) topped the Street's earnings estimate in six out of the past seven quarters by an average margin of 11.0%. Management has worked to increase shareholder value through dividends and share repurchases. This Zacks #1 Rank stock has a current dividend yield of 1.5% and a five-year average dividend yield of 1.2%. MNT's return on equity nearly doubles that of the industry average--21% compared to 11%. Full Analysis Mentor Corporation is a leading global medical device company that develops, manufactures and markets various products serving the aesthetic medical market. The company is headquartered in Santa Barbara, California, with manufacturing and research operations in the United States, France, the Netherlands and the United Kingdom. MNT exceeded analysts' earnings expectations in six out of the past seven quarters by an average margin of 11.0%. Furthermore, the company matched or topped the consensus estimate in 10 out of the past 11 quarters. On Aug 7, MNT posted first-quarter fiscal 2007 profits of 33 cents per share--beating the Street's estimate by an impressive 17.9%. Net revenues rose 7.2% to $79.4 million from $74.1 million in the prior-year period. Over the past five years, the company's earnings per share grew 12%. Looking ahead, they are expected to grow by 18% over the next 3-5 years, with the industry forecasted to grow at a 16% clip. Management has done its part in boosting shareholder value. During the first quarter, MNT repurchased two million shares of its common stock for a total of $84 million. The Board of Directors also increased the authorized number of shares that the company can buy back to 5 million from 3.3 million. Moreover, the Board declared a quarterly cash dividend of 18 cents per share on Jun 20. The company has a current dividend yield of 1.5% and a five-year average dividend yield of 1.2%. The consensus estimate for fiscal 2007 currently resides at $1.19. This marks a 5.3% improvement when compared to the consensus of 60 days earlier. Profit forecasts for fiscal 2008 have risen 11.0% to $1.52 over the same period of time. On Jun 2, MNT sold its surgical urology and clinical and consumer healthcare business segments to Coloplast A/S, a worldwide provider of high-quality and innovative healthcare products and services, for $463 million. Going forward, the company will focus primarily on the fast-growing field of aesthetics medicine, which covers breast implants, liposuction products and dermatology items. The company's level of profitability, measured by its return on equity, nearly doubles that of the industry average—21% compared to 11%. 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| VitalStocks Home