(TDW) - Earnings almost 14% above the estimate - Provides support services to the global offshore energy industry

Tidewater's earnings momentum is strong as evidenced by the fact that it has exceeded analayst estimates for seven consecutive quarters. Year-over-year growth surpassed 100% in six of those quarters. Five analysts have raised their estimates for this fiscal year, while four have done so for next year. Over the past two months, this year's estimates have increased 8.9% to $5.26 per share, while next year's numbers have jumped 10.7% to $5.98 per share. Full Analysis Tidewater, Inc. (TDW), through its subsidiaries, provides offshore supply vessels and marine support services to the global offshore energy industry. As of March 31, 2006, the company operated a fleet of approximately 520 vessels. It provides services supporting various phases of offshore exploration, development, and production, including towing of and anchor handling of mobile drilling rigs and equipment; and transporting supplies and personnel necessary to sustain drilling, workover, and production activities. The company also assists in offshore construction activities and provides various specialized services, including pipe laying, cable laying, and 3-D seismic work. The principal areas of the company's operations include the U.S. Gulf of Mexico, the North Sea, the Persian Gulf, and the Caspian Sea, as well as offshore Australia, Brazil, Egypt, India, Indonesia, Malaysia, Mexico, Trinidad, Venezuela, and west Africa. TDW reported fiscal first-quarter earnings in July that easily surpassed estimates. The company came in with earnings of $1.23 per share, almost 14% above the estimate of $1.08 per share. The company logged $269.8 million in revenue during the quarter, up 40 percent from $192.2 million a year ago. Additionally, TDW announced a stock repurchase program of up to $157.9 million. The company said it plans to use available cash and, when it is to its advantage, borrowings under its revolving credit facility to pay for the buyback. Tidewater's previous repurchase program expired June 30, with the company buying back about 2.4 million shares for $112.1 million, or an average of $46.79 per share. The company also declared a regular quarterly dividend of 15 cents. Earnings momentum is strong at TDW as evidenced by the fact that it has exceeded analayst estimates for seven consecutive quarters. Year-over-year growth surpassed 100% in six of those quarters. Five analysts have raised their estimates for this fiscal year, while four have done so for next year. Over the past two months, this year's estimates have increased 8.9% to $5.26 per share, while next year's numbers have jumped 10.7% to $5.98 per share. The stock is cheap given its robust growth prospects. Currently, TDW is trading at 7.7x next year's estimates, well below the long-term growth rate of 34%, giving the stock an ultra-low PEG ratio of 0.23. 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