(BSC) - Bear Stearns Inc - topped the consensus earnings estimate for 16 straight quarters, including double-digit percentage surprises in 12 of them

The Bear Stearns Companies, Inc. (BSC) returned nearly 29% since it was last featured as a Value pick on Jun 20. BSC exceeded analysts’ earnings expectations for 16 consecutive quarters, underscoring its status as a Zacks #1 Rank (Strong Buy) stock. In addition to solid fourth-quarter and full-year results, the brokerage giant raised both its dividend and share repurchase authorization. BSC has a price-to-book ratio of 1.8, compared to 4.8 for the market. Full Analysis The Bear Stearns Companies, Inc. is a leading global investment banking, securities trading and brokerage firm. The company operates in three segments: capital markets, global clearing services and wealth management. BSC serves corporations, governments, institutional and individual investors worldwide. BSC was last featured as a Value pick on Jun 20 and has returned nearly 29% since that time. The company retains its Zacks #1 Rank (Strong Buy) status, reflecting its impressive ability to consistently exceed rising earnings estimates. BSC topped the consensus earnings estimate for 16 straight quarters, including double-digit percentage surprises in 12 of them. On Dec 14, BSC posted fourth-quarter fiscal 2006 profits of $4.00 per share, up substantially from the $2.90 earned in the prior-year period. Net income soared 38.3% to $562.8 million, versus $407.0 million achieved in the fourth quarter of fiscal 2005. Net revenues climbed 26.3% to $2.4 billion from $1.9 billion. For the entire fiscal year, net revenues leapt 24.3% to $9.2 billion from $7.4 billion last year. Profits amounted to $2.1 billion, up 40.0% from the $1.5 billion earned in fiscal 2005. The company increased profits for five consecutive years. “We are pleased to announce Bear Stearns' fifth consecutive year of record net income and earnings per share,” stated Chairman and CEO James E. Cayne. “I look forward to 2007 and our continued expansion both internationally and domestically.” In addition to solid fourth-quarter and full-year results, the company also announced a regular quarterly cash dividend of 32 cents per common share of stock. The payment represents a 14% boost when compared to the 28-cent dividend paid since January 2006. BSC is currently yielding 0.66%, with a five-year average dividend yield of 0.92%. The Board also increased its total share repurchase authorization from $1.5 billion to $2.0 billion. Consensus estimates for this quarter and next have risen 4.5% and 7.4%, respectively, over the past 60 days. Profit forecasts for this year and next jumped 5.9% and 9.5%, respectively, over the same period of time. Earnings per share are projected to grow 10.5% over the next 3-5 years. BSC is currently trading at a valuation of 11.8x trailing 12-month earnings and at 11.4x 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 15.6x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.8, compared to 4.8 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