(OSG) - Consensus estimates for this quarter and next quarter increased 77.4% and 48.1%, respectively

Overseas Shipholding Group, Inc. (OSG) topped the Street's earnings estimate in six out of the past eight quarters by an average margin of 22.1%. Profit forecasts for 2006 and 2007 have shot upward. The Board of Directors authorized a $300 million share repurchase plan and declared a quarterly dividend of 25 cents in June. OSG is currently yielding 1.7%. This Zacks #1 Rank stock has a price-to-book ratio of only 1.2, compared to 5.3 for the market. Full Analysis Overseas Shipholding Group, Inc. is the second-largest publicly traded oil tanker company in the world, measured by number of vessels. The company owns and operates an International Flag and U.S. Flag fleet of 90 vessels that transport crude oil, petroleum products and dry bulk commodities throughout the world. OSG exceeded analysts' earnings expectations in six out of the past eight quarters by an average margin of 22.1%. In its most recent quarter the company came up short, missing the Street's estimate by six cents when it posted second-quarter earnings per share of $1.52. Revenues came in at $230.8 million from $238.4 million during the same period last year. On Aug 7, the company announced a strategic partnership agreement with TransCanada CNG Technologies Ltd, a subsidiary of TransCanada Corporation (TRP), in which OSG will own and operate a new type of tanker vessel, capable of transporting large quantities of compressed natural gas (CNG). President and CEO of OSG Morten Arntzen stated, “Combining TransCanada's unique technology with OSG's in-depth knowledge of marine transportation and vessel construction will enable our respective companies to be the first to develop an efficient and commercially viable CNG vessel.” Analysts' optimism regarding the company's future earnings potential has been skyrocketing. Consensus estimates for this quarter and next quarter increased 77.4% and 48.1%, respectively, over the past 60 days. For the full years of 2006 and 2007, profit forecasts jumped 24.4% and 17.2%, respectively, over the same period of time. The Board of Directors authorized a $300 million share repurchase plan on Jun 9. At the time of the announcement, the approved dollar amount would be the equivalent of 15% of the company's total shares outstanding. Stockholders were also pleased when the Board declared a quarterly dividend of 25 cents per common share of stock on Jun 8. OSG has a current dividend yield of 1.7% OSG is currently trading at a valuation of 6.7x trailing 12-month earnings and at 5.9x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.7x trailing 12-month earnings and at 15.8x its current fiscal-year estimated earnings. The company has a price-to-book ratio of only 1.2, compared to 5.3 for the market. OSG's return on equity of 18% tops the industry average of 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