(TK) - Earnings estimates for this quarter and next quarter have ballooned 123.7% and 41.6%, respectively

Teekay Shipping Corporation (TK), which is a Zacks #1 Rank stock, recently exceeded analysts' second-quarter earnings expectations by 15.8%. Consensus estimates have experienced a sizeable leap over the past 60 days. The Board of Directors increased its share repurchase program by $150 million in mid June and declared a quarterly dividend of 20.75 cents per common share of stock on Jul 4. TK has a price-to-book ratio of only 1.4, considerably lower when compared to 5.1 for the market. Full Analysis Teekay Shipping Corporation, together with its subsidiaries, provides international crude oil and petroleum product transportation services to oil companies, oil traders and government agencies worldwide. As of Jun 30, the company's fleet (excluding vessels managed for third parties) consisted of 146 vessels, including chartered-in vessels and newbuildings on order. When TK reported second-quarter earnings per share of 66 cents, it represented the second straight quarter in which the company topped the Street's estimate. With analysts looking for 57 cents, the company surprised to the upside by 15.8%. In the previous quarter, TK posted a 4.0% positive surprise. Net revenues declined 18.6% to $311 million from $382 million recorded in the prior-year period. Consensus estimates have experienced a considerable jump over the past 60 days, displaying analysts' growing optimism about the future prospects of the company. Estimates for this quarter and next quarter have ballooned 123.7% and 41.6%, respectively. For the full years of 2006 and 2007, profit forecasts have risen 24.7% and 20.7%, respectively, over the past two months. Four analysts submitted upward revisions for both this quarter and the full year of 2006, while three did so for the fourth quarter and the full year of 2007. On Jun 12, the Board of Directors upped its existing share buyback program by $150 million, resulting in $186 million available for repurchase. TK has bought back 1.3 million shares, for a total cost of $54.3 million, since Jun 12. This leaves $132.1 million remaining under the company's existing share repurchase authorization. The Board also declared a dividend of 20.75 cents per common share of stock on Jul 4. The company has a current dividend yield of 2.0%. TK increased its dividend 51% in 2005, following increases of 16% in 2004 and 10% in 2003. TK is currently trading at a valuation of 9.5x trailing 12-month earnings and at 9.4x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.6x trailing 12-month earnings and at 15.6x its current fiscal-year estimated earnings. The company has a price-to-book ratio of only 1.4, considerably lower when compared to 5.1 for the market. TK's return on equity of 15% is in line with that of the industry average. 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