(TRMA) - Trico Marine Services, Inc - return on equity of 21% betters the industry average of 16%

Trico Marine Services, Inc. (TRMA), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations in three out of the past four quarters by an average margin of 25.0%. Consensus estimates have been on the rise for both this quarter and for the full year. The company has a price-to-book ratio of 1.8, compared to 4.8 for the market. Its return on equity of 21% betters the industry average of 16%. Full Analysis Trico Marine Services, Inc. owns and operates a diverse fleet of marine support vessels serving the oil and gas industry in the Gulf of Mexico, the North Sea, Latin America, the Caribbean and West Africa. The company’s vessels transport drilling materials, supplies and crews and provide support for the construction, installation, maintenance and removal of offshore facilities and for well servicing and subsea construction. TRMA beat analysts’ earnings expectations in three out of the past four quarters by an average margin of 25.0%. The company managed to surprise by a double-digit percentage in all three quarters. In the one quarter in which TRMA failed to beat the Street, it missed by only a penny. On Nov 8, TRMA reported third-quarter profits of $17.8 million, or $1.17 per share. The result topped the consensus estimate of 99 cents by an impressive 18.2%. In the second quarter, the company’s profits came in at $12.1 million. Total revenues amounted to $68.5 million, up 11.4% when compared to the second quarter of 2006. President and CEO Trevor Turbidy stated, “Our net income growth and improved operating margins reflect increased charter hire revenues and a continued focus on controlling operating expenses.” During the quarter, TRMA announced that it will build two GPA 640, 210' offshore supply vessels for a total cost of approximately $35 million. The vessels will be constructed by Bender Shipbuilding & Repair Co., Inc. The first vessel is scheduled to be delivered in March 2008 and the second vessel in July 2008. Turbidy commented, “We are delighted that Bender will be constructing the vessels and we have the utmost confidence in their ability to deliver the vessels on each of their expected delivery dates in 2008.” Consensus estimates have been on the rise for both this quarter and for the full year. Estimates for this quarter increased 6.3% to $1.01 over the past 60 days, while profit forecasts for this year are up 7.6% to $3.82 over the same period of time. TRMA is currently trading at a valuation of 9.7x trailing 12-month earnings and at 8.8x 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 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. TRMA’s return on equity of 21% betters the industry average of 16%. 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