(SAFC) - Safeco Corporation - During the second quarter, the company bought back 3.7 million shares

Safeco Corporation (SAFC), which was first highlighted as a Value pick on Jun 1, continues to beat earnings estimates and trade at a discounted valuation. The company exceeded analysts' expectations in 15 out of the past 16 quarters. The Board of Directors increased the company's share repurchase authorization on Aug 11 and declared a quarterly cash dividend of 30 cents per common share of stock. This Zacks #1 Rank stock has a price-to-book ratio of 1.8, compared to 5.3 for the market. Full Analysis Safeco Corporation operates as a property and casualty insurance company in the United States. The company's four business segments include Safeco Personal Insurance, Safeco Business Insurance, Surety and P&C Other. When SAFC was first presented as a Value stock on Jun 1, its remarkable history of exceeding analysts' earnings expectations was noted. Furthermore, consensus estimates for the company were trending higher. Nearly five months later, the story has not changed and neither has its Zacks Rank as a result. This Zacks #1 Rank stock also continues to trade at a discounted valuation. SAFC reported better-than-expected earnings per share in 15 of the past 16 quarters, including 14 surprises by at least a double-digit margin. SAFC is scheduled to release its third-quarter results on Oct 31. On Aug 2, the company reported second-quarter profits of $1.71 per share. With analysts calling for $1.35, SAFC surprised by an impressive 26.7%. Moreover, the result represented a 23.0% year-over-year improvement. Total revenues were down slightly to $1.54 billion from $1.59 billion in the prior-year period. During the second quarter, the company bought back 3.7 million shares, or 3% of its outstanding common stock, for a total cost of $205.5 million. Year to date, SAFC repurchased 8.9 million shares, or 7% of its outstanding shares, for a total cost of $475.7 million. The Board of Directors boosted the company's buyback program to 10 million shares on Aug 11. The number includes those shares that have yet to be repurchased under previous authorizations. The consensus estimate for this quarter currently resides at $1.47. Compared to the consensus of 60 days earlier, it jumped 11.4%, with six analysts upping their profit forecasts. Estimates for the full year of 2006 increased 3.3% to $6.24 over the same period of time. Seven analysts submitted upward revisions. The Board declared a quarterly dividend of 30 cents per common share of stock on Aug 11. The dividend is payable Oct 23 to shareholders of record as of Oct 6. Back in early May, the company's dividend was increased by 20%. SAFC has a current dividend yield of 2.0% and a five-year average dividend yield of 1.9%. SAFC is currently trading at a valuation of 11.0x trailing 12-month earnings and at 9.8x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.3x trailing 12-month earnings and at 16.3x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.8, compared to 5.3 for the market. 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