(FMD) - First Marblehead Corporation - Board of Directors recently boosted its quarterly cash dividend by 25%

The First Marblehead Corporation (FMD), which was first presented on Mar 21, exceeded analysts' earnings expectations in eight out of the past nine quarters by an average margin of 12.1%. Consensus estimates for both this quarter and the full year have been trending higher. The Board of Directors recently boosted its quarterly cash dividend by 25%. The company has a current dividend yield of 0.86%. Full Analysis The First Marblehead Corporation provides outsourcing services for private education lending in the United States. The company focuses primarily on loan programs for undergraduate, graduate and professional education, and to a lesser degree, on the primary and secondary school market. FMD was first highlighted as a Growth and Income stock on Mar 21. At the time the company topped analysts' earnings expectations for seven consecutive quarters. In the two quarters that have passed since its debut, FMD missed the consensus estimate by only a penny and subsequently surprised by a large margin. Furthermore, the Board of Directors recently authorized an increase in its quarterly dividend. On Aug 10, FMD posted fourth-quarter fiscal 2006 profits of $70.8 million, or $1.12 per share. With analysts projecting 84 cents, the company surprised by an impressive 33.3%. The result also marked a 72.3% year-over-year improvement when compared to the 65 cents earned in the fourth quarter of fiscal 2005. Revenues soared 23.8% to $148.8 million from $120.2 million. For the entire fiscal year, profits experienced a 47.8% leap to $236 million, while revenues were up 34.8% to $563.6 million. President and CEO Jack L. Kopnisky stated, “Fiscal year 2006 was one of the strongest years in First Marblehead's history, as revenue, earnings and EPS all exceeded our expectations. We continue to demonstrate that our team can consistently deliver strong operating results. Looking forward, we are confident in our business model and believe a foundation is in place for significant growth into the future.” FMD is scheduled to release its first-quarter fiscal 2007 results on Oct 24. The consensus estimate for the quarter currently sits at $1.46 and represents a 71.8% increase when compared to the consensus of 60 days earlier. Profit forecasts for the entire fiscal year have risen 10.0% to $4.53 over the same period of time. Two analysts submitted upward revisions for this quarter while three followed suit for the full year. Earnings per share are projected to grow 41% over the next 3-5 years, with the industry expected to grow at a 15% clip. The Board of Directors boosted its quarterly cash dividend by 25.0% to 15 cents per share from 12 cents per share on Sep 7. The company has a current dividend yield of 0.86%. 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