(OMM) - Consensus estimates have been on the rise for this quarter and next quarter, jumping 27.5% and 19.6%, respectively

OMI Corporation (OMM) beat the Street's earnings estimate in seven out of the past eight quarters by an average margin of 8.8%. On Sep 11, the Board of Directors approved an increase in the company's quarterly dividend and boosted its share repurchase program by $70 million. This Zacks #1 Rank stock has a current dividend yield of 1.9% and a five-year average dividend yield of 0.79%. 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. Over the past eight quarters, OMM topped analysts' earnings expectations on seven occasions by an average margin of 8.8%, while matching the consensus estimate once. In the second quarter of 2006, the company posted profits of 78 cents per share (excluding the sale of three Suezmax vessels that represented a gain of $78 million). This marked a 20.0% positive earnings surprise. Earnings in the prior-year period came in at 55 cents per share. Revenues jumped 23.4% to $183.3 million from $148.5 million in the second quarter of 2005. Chairman and Chief Executive Officer Craig H. Stevenson, Jr. stated, “On both a net income and earnings per share basis, the quarter was the best in the company's history. Even excluding gains from sales of vessels, it was the best second quarter in our history.” On Sep 11, the Board of Directors boosted it quarterly dividend by 25% to 12.5 cents per share from 10 cents. The dividend will be paid on Oct 11 to shareholders of record as of Oct. 2. OMM has a current dividend yield of 1.9% and a five-year average dividend yield of 0.79%. The Board further enhanced shareholder value by increasing its share repurchase program by $70 million. The company now has the authority to buy back $113.6 million of its common stock. Consensus estimates have been on the rise for this quarter and next quarter, jumping 27.5% and 19.6%, respectively, over the past 60 days. Four analysts revised their estimates upward for this quarter, while three did so for next quarter. Profit forecasts for this year and next are up 18.2% and 15.9%, respectively, over the same period of time. Four analysts revised their forecasts upward for this year as well as for next year. Earnings per share are forecasted to grow 17% over the next 3-5 years, with the industry expected to grow at a 15% clip. OMM's return on equity, a common measure of a company's level of profitability, nearly doubles that of the industry average—27% compared to 15%. 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