(WLSC) - Williams Scotsman International, Inc - return on equity of 14% betters the industry average of 10%

Williams Scotsman International, Inc. (WLSC), a Zacks #1 Rank stock, topped analysts’ earnings expectations for the past four quarters by an average margin of 32.6%. In early November, the company reported solid results for the third quarter and first nine months of the year. Earnings per share are projected to grow 16% over the next 3-5 years. The company has a price-to-book ratio of 2.3 and a PEG ratio of 1.02. Full Analysis Williams Scotsman International, Inc., through its subsidiary, Williams Scotsman, Inc., offers mobile and modular space solutions for the construction, education, healthcare, utilities, commercial and industrial, chemical and pharmaceutical, and government markets principally in North America. The company’s products include mobile offices, single-wide modular space units, section modulars, classrooms, sales offices, storage products and multiunit modular structures. WLSC topped analysts’ earnings expectations for the past four quarters by an average margin of 32.6%. In each of the four quarters the company managed to surprise by a double-digit percentage. Earnings per share are projected to grow 16% over the next 3-5 years. The industry is expected to grow at a 15% clip. On Nov 1, the company reported third-quarter earnings per share of 30 cents, which beat the consensus estimate of 24 cents by an impressive 25.0%. WLSC lost 59 cents per share in the prior-year period. Revenues came in at $187.6 million, a 14.7% jump from $163.5 million in the third quarter of 2005. For the first nine months of the year, profits were $38.2 million, compared to a loss of $18.2 million for the first nine months of 2005. Revenues rose 20.5% to $511.7 million from $424.6 million in the same period last year. Chairman, President and CEO Gerry Holthaus stated, “We produced another outstanding quarter of financial results. We are making excellent progress in achieving our goals for 2006 and look forward to continued growth for Williams Scotsman.” On Nov 30, Moody's Investors Service stated that it is placing WLSC’s ratings under review for a potential upgrade. The company’s recent strong financial performance was cited as fueling such a statement. Moody’s also pointed to the company’s substantial increases in leasing rates, leading to strong cash flow generation. Furthermore, WLSC has demonstrated “a disciplined approach” toward the use of debt. WLSC is currently trading at a valuation of 16.0x current fiscal-year estimated earnings and at 13.7x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 15.8x current fiscal-year estimated earnings and at 14.4x next fiscal-year estimated earnings. The company has a price-to-book ratio of 2.3, compared to 4.9 for the market. Its PEG ratio currently sits at 1.02. WLSC’s return on equity of 14% betters the industry average of 10%. 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