(VLCCF) - The company exceeded analysts' estimates in five out of the past eight quarters by an average margin of 50.7%

Knightsbridge Tankers Limited (VLCCF), a Zacks #1 Rank stock, topped the Street's earnings estimate in five out of the past eight quarters by an average margin of 50.7%. Consensus estimates increased dramatically over the past two months. The company has a price-to-book ratio of 2.2, compared to 5.3 for the market. VLCCF's return on equity is nearly double that of the industry average--27% compared to 15%. Full Analysis Knightsbridge Tankers Limited is an international tanker company whose primary business activity is the international seaborne transportation of crude oil. The company's fleet consists of five double-hull crude oil carriers. When VLCCF tops the Street's earnings estimate, it usually does so by a very large margin. The company exceeded analysts' estimates in five out of the past eight quarters by an average margin of 50.7%. On Aug 11, VLCCF announced second-quarter profits of $7.9 million, or 46 cents per share. Compared to the second quarter of 2005, this marked a 7.0% year-over-year improvement. It also represented a 7.0% positive surprise. Operating revenues jumped 13.4% to $23.7 million. Consensus estimates increased dramatically over the past 60 days. Profit forecasts for this quarter and next are up 284.2% and 157.1%, respectively. Estimates for the full years of 2006 and 2007 have also experienced a considerable leap, rising 64.5% and 43.3%, respectively. Investors requiring a stream of cash flow from their investment in VLCCF have enjoyed a current dividend yield of 12.8%. During the second quarter, the company used $2.9 million of its cash to repay its loan and credit facilities, while $17.1 million was distributed via dividend payments. On Aug 11, the Board of Directors authorized a quarterly cash dividend of 80 cents per share. When examining VLCCF's level of profitability, as measured by its return on equity, investors will notice that the company is superior when compared to the industry average--27% compared to 15%. VLCCF is currently trading at a valuation of 10.3x trailing 12-month earnings and at 8.3x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.1x trailing 12-month earnings and at 16.1x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 2.2, 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