(GSIC) - Analysts expect earnings growth to grow 108% this year and jump to 169% next year

GSI Commerce, Inc. is expecting earnings growth to accelerate. Analysts expect earnings growth to grow 108% this year and jump to 169% next year. Earnings estimates have been on the rise as well. Over the past 60 days, this year's estimates have risen 6.3%, while next year's numbers have increased 12.5%. Three analysts have increased their estimates for this year, while four have done so for next year. Full Analysis GSI Commerce, Inc. (GSIC) and its subsidiaries provide e-commerce solutions that enable retailers, branded manufacturers, entertainment companies, and professional sports organizations to operate e-commerce businesses. The company, through its integrated e-commerce platform, provides Web site administration, Web infrastructure and hosting, business intelligence, an e-commerce engine, and order management; fulfillment, drop shipping, customer service, and buying; and creative design, Web site usability, testing and enhancements, channel integration, business-to-business, content development and imaging, e-commerce strategy, online marketing, and customer relationship management services. The company reported a better-than-expected first-quarter earnings release. GSIC lost seven cents per share, 12.5% ahead of the consensus estimate. Merchandise sales were $191.0 million in the first quarter of fiscal 2006, a 40 percent increase compared to $136.2 million in the same period in fiscal 2005. Gross margin was 41.3 percent in the first quarter of fiscal 2006, an increase of 430 basis points from 37.0 percent in the same period in 2005. "We are off to a strong start to the year with net revenue, merchandise sales and adjusted EBITDA all above our expectations," said Michael G. Rubin, chairman and CEO of GSI Commerce. Based on the momentum of our business, including a strong business development pipeline, we are increasing our level of investment spending while we believe we remain on track to achieve our profitability goals for the year of increasing net income between 85 percent and 178 percent and increasing adjusted EBITDA between 54 percent and 69 percent," said Rubin. Earnings growth is expected to accelerate meaningfully this year and next. Analysts expect earnings growth to grow 108% this year and jump to 169% next year. Earnings estimates have been on the rise as well. Over the past 60 days, this year's estimates have risen 6.3%, while next year's numbers have increased 12.5%. Three analysts have increased their estimates for this year, while four have done so for next year. The stock is currently trading at 29.6x next year's estimates of 45 cents per share, well below the long-term growth rate of 39.25%, giving the stock a PEG ratio of 0.75. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. 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

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(MS) - estimates for this quarter and next jumped 11.4% and 4.2%, respectively, over the past 90 days

Morgan Stanley (MS), a stock that we first featured on Mar 29, 2006, has continued its winning ways. The company has maintained its Zacks #1 Rank due to its history of topping analysts' expectations while experiencing upward estimate revisions. Earnings per share are projected to grow 12.6% over the next 3-5 years. MS has a current dividend yield of 1.7%. Full Analysis Morgan Stanley is a global financial services firm that operates in four segments: institutional securities, retail brokerage, asset management and Discover. With more than 600 offices in 30 countries, the company's diverse client base includes corporations, governments, financial institutions and individuals. When MS was first highlighted as a Growth and Income stock on Mar 29, 2006, it had topped the consensus earnings estimate for the past three quarters by an average margin of 24.8%. The company continued its winning ways by beating the Street yet again in its most recent quarter, and has now done so in 13 out of the past 15 quarters. Furthermore, and most importantly, it is still a Zacks #1 Rank. On Jun 21, 2006, MS posted second-quarter fiscal 2006 profits of $1.85 per share, surprising to the upside by a solid 28.5%. Earnings were almost a dollar better than the 86 cents per share achieved in the prior-year period. Net revenues soared 48.3% to a new record of 8.9 billion. Chairman and CEO John J. Mack stated, "I could not be more pleased with the outstanding results the employees of Morgan Stanley delivered in the second quarter. There is still a great deal of work to be done, but we are moving aggressively on many fronts and we see significant opportunities to create shareholder value." For the first six months of fiscal 2006, profits and net revenues were up 51.0% and 34.9%, respectively, when compared to the first six months of fiscal 2005. Earnings per share are projected to grow 12.6% over the next 3-5 years. Consensus estimates for this quarter and next jumped 11.4% and 4.2%, respectively, over the past 90 days. Profit forecasts for fiscal 2006 and fiscal 2007 have risen 12.9% and 6.0%, respectively, over the same time period. On May 31, 2006, the Board of Directors declared a quarterly cash dividend of 27 cents per share of common stock. The company's annual dividend was 80 cents per share in fiscal 2000 but has since jumped to $1.08 per share. MS is currently yielding 1.7%. Moreover, the company repurchased approximately 22 million shares of its common stock since the end of fiscal 2005. Its return on equity of 22% is in line with the industry average. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. 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

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(ILMN) - new consensus estimate calls for full-year GAAP profits of 42 cents per share, versus just 15 cents per share a week ago

Illumina (ILMN) spiked to a new 52-week high in response to strong earnings and very bullish guidance. Earlier this week, the company surpassed expectations and materially raised its projections for full-year earnings. Investors reacted by pushing the stock up by nearly 30%. Looking forward, the company expects non-GAAP income to reach 61 to 82 cents per share. The forecast represents a material revision over previous guidance for non-GAAP earnings of 26 to 43 cents per share. The non-GAAP numbers exclude non-cash stock compensation, which ILMN anticipates totaling 27 to 31 cents per share this year. Analysts quickly reacted to the bullish news by raising their forecasts. The new consensus estimate calls for full-year GAAP profits of 42 cents per share, versus just 15 cents per share a week ago. Two months ago, analysts were expecting just 11 cents per share. The strong second-quarter results and bullish revisions to full-year estimates have propelled the stock higher. Shares of ILMN have spiked 28% since Tuesday, rising to their highest price since November 2000. The upward move has occurred on strong volume, which suggests conviction on the part of buyers. ILMN does not have any pre-established resistance until $44. Background ILMN generated second-quarter GAAP profits of 14 cents per share, blowing away expectations for three cents per share and extending a streak of positive earnings surprises. Revenues soared 163% to $41.6 million thanks to strong demand for the company's genetic variation and function analysis tools. Illumina has increased revenues for 20 consecutive quarters. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. 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

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(MTLM) - company surprised to the upside by an impressive 28.4%

Metal Management, Inc. (MTLM), a Zacks #1 Rank stock, surprised to the upside by an impressive 28.4% when it posted fourth-quarter fiscal 2006 earnings per share of 86 cents. Analysts' estimates for this quarter and for fiscal 2007 have been trending higher. MTLM has been active in the acquisition arena—announcing two purchases since early-March. The company has a price-to-book ratio of 1.9, compared to the market's multiple of 3.8. Full Analysis Metal Management, Inc. is one of the largest full service metals recyclers in the United States, with approximately 50 recycling facilities in 16 states. The company is primarily involved in the collection and processing of ferrous metals (iron and steel) and non-ferrous metals (principally aluminum, copper, nickel-based, titanium and high-temperature alloys). On May 25, 2006, MTLM reported fourth-quarter fiscal 2006 profits of $22.6 million, or 86 cents per share, compared to $16.2 million, or 64 cents per share, during the prior-year period. The Street was expecting 67 cents, thus, the company surprised to the upside by an impressive 28.4%. Net sales were down 6.1% to $434.1 million. The consensus estimate for this quarter currently sits at 77 cents per share. When compared to the consensus of 60 days ago, analysts upped their forecasts by 10.0%. Profits forecasts for fiscal 2007 have risen 3.2% to $2.92 per share over the same period of time. On Mar 1, 2006, MTLM announced that it acquired substantially all of the assets of privately-held Morris Recycling, Inc. Morris Recycling, now known as Metal Management Mississippi, has 10 facilities and processes approximately 240,000 tons of ferrous metals and 32 million pounds of nonferrous metals on an annual basis. The acquisition made a positive impact in the last month of MTLM's fourth quarter. The company followed up its acquisition of Morris by purchasing a recycling facility in East Chicago, Indiana from OmniSource Corporation. The facility handles around 430,000 tons of ferrous scrap metal and approximately 10 million pounds of non-ferrous scrap metal annually. On May 23, 2006, the Board of Directors declared a quarterly dividend of 7.5 cents per share of common stock. The company has a current dividend yield of 1.0%. MTLM's return on equity nearly doubles that of the industry average—17% compared to 9%. MTLM is currently trading at a valuation of 12.3x trailing 12-month earnings and at 9.9x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.5x trailing 12-month earnings and at 15.3x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.9, compared to the market's multiple of 3.8. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. 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

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(KZL) - exceeded estimates in five out of the past six quarters - Atlantis Paradise Island is a cash cow

Kerzner International Limited has exceeded estimates in five out of the past six quarters, with two companies raising their numbers for this year. Earnings estimates for 2006 have increased seven cents to $2.66 over the past 90 days. Second-quarter estimates have jumped over 10% in the past week to 99 cents per share. KZL is trading at 23.8x next year's earnings estimates, slightly above the long-term growth rate of 20%, giving the stock a PEG ratio of 1.19. Full Analysis Kerzner International Limited (KZL), through its subsidiaries, engages in the ownership, development, and operation of destination resorts, gaming entertainment properties, and luxury resort hotels worldwide. The company operates in three segments: Destination Resorts, Gaming, and One&Only Resorts. In addition, the company operates a tour operator business. The company was incorporated as Sun International Hotels Limited in 1993 and changed its name to Kerzner International Limited in 2002. The company said first-quarter profit climbed 28 percent to $1.27 per share, compared with $38 million, or $1.01 a share, in last year's first quarter. Quarterly revenue grew 16 percent to $234.8 million from $201.7 million. Growth at its luxury resort segment offset lower earnings at gaming and destination resort units. Estimates called for $1.14 per share. Kerzner is in an enviable competitive position. The company has chosen not to compete in the main gambling hubs of Las Vegas and Atlantic City. The company instead operates in distinctive locations, where it often secures exclusive contracts. Atlantis Paradise Island is a cash cow, and Kerzner has plenty of room to expand the property. KZL also has compelling growth opportunities in places such as Dubai and Morocco, and it plans to bid for one of two casino licenses in Singapore. The company has exceeded estimates in five out of the past six quarters, with two companies raising their numbers for this year. Earnings estimates for 2006 have increased seven cents to $2.66 over the past 90 days. Second-quarter estimates have jumped over 10% in the past week to 99 cents per share. KZL is trading at 23.8x next year's earnings estimates, slightly above the long-term growth rate of 20%, giving the stock a PEG ratio of 1.19. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. 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

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(MRO) - Consensus estimates have been on the rise for this quarter and next quarter, jumping 24.4% and 5.5%

Analysts' earnings expectations have been on the rise for Marathon Oil Corporation (MRO). The company recently announced a potential joint venture with The Andersons, Inc. (ANDE) in which the two firms would work together to develop ethanol plants. The Board of Directors increased its quarterly dividend by 21% in late-April. MRO's return on equity tops that of the industry average--33% compared to 27%. Full Analysis Marathon Oil Corporation is engaged in the worldwide exploration and production of crude oil and natural gas, as well as the domestic refining, marketing and transportation of petroleum products. On Apr 27, 2006, MRO posted first-quarter profits of $739 million, or $2.01 per share, versus $357 million, $1.02 per share in the prior-year period. Total worldwide oil and gas volumes averaged 376.8 MBOE/d, which represented a 12.8% increase when compared to the year earlier level. The company's average worldwide realized liquids and natural gas prices were $50.16 per barrel and $6.44 per thousand cubic feet, representing year-over-year gains of 29.2% and 40%, respectively. On a down note, first-quarter EPS missed the Street's estimate. Consensus estimates have been on the rise for this quarter and next quarter, jumping 24.4% and 5.5%, respectively, over the past 60 days. Profit forecasts for this year and next are up 9.1% and 5.6%, respectively, over the same period of time. MRO announced on Jul 10, 2006, that it agreed with grains processor The Andersons, Inc. to explore a 50/50 joint venture in which the two companies would construct and operate a number of ethanol plants. Under the proposed deal, which is subject to approval by each company's board of directors and the execution of definitive agreements, Andersons would provide day-to-day management of the ethanol plants and supply the corn from which the fuel is made. An initial plant is projected to have annual production capacity of 110 million gallons of ethanol. Site selection is expected to be announced soon. On Apr 26, 2006, the company announced a 21% increase in its quarterly dividend, leading to a dividend of 40 cents per share. The last boost to its dividend occurred in the second quarter of 2005. The company is currently yielding 1.9% and has a five-year average dividend yield of 3.0%. MRO increased revenues and expanded gross margins for the past three years. The company saw its profits more than double in 2005. Earnings per share grew 16.1% over the past five years and are projected to grow 11.7% over the next 3-5 years. MRO's return on equity tops that of the industry average-33% compared to 27%. MRO is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 22.0% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. 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

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(AMB) - Following the most recent report, four of the eight covering analysts raised their forecasts for 2006

A recent rise in full-year expectations has poised AMB Property Corporation (AMB) to potentially break through an important resistance level. The stock is in a position to post a close above $53 for the first time since March. The company has history of surprising to the upside, having surpassed expectations during four of the past five quarters. As a result, analysts are taking notice. Following the most recent report, four of the eight covering analysts raised their forecasts for 2006 FFO. The revisions led to a five-cent increase in the consensus estimate over the past week to $3.06 per share. Notably, one of the analysts also raised his forecast for 2007. The bullish earnings news and positive estimate revisions have helped contributed to a four-week, 4.27% increase in the stock's price. Comparatively, the S&P 500 has declined during the same period. At its current level, AMB is testing resistance at $53. The stock has not closed above $53 since March, so a breakout would be bullish. There is limited resistance above this level, with the 52-week high sitting at $56.53. An impetus for AMB to move to the high $50s could come from further positive estimate revisions. Four of the covering analysts have yet to adjust their forecasts in response to the better than expected second-quarter numbers. Background AMB develops and owns industrial real estate both in the U.S. and internationally. Last week, AMB blew away second-quarter expectations with funds from operations (FFO) of 87 cents per share; analysts had projected FFO of 73 cents per share. Industrial portfolio occupancy rose 90 basis points to 95.4% from a year prior. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. 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

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(CMTL) - strong history of topping analysts' estimates, having done so for an amazing 13 quarters in a row

Comtech Telecommunications Corp. (CMTL), a Zacks #1 Rank stock, exceeded analysts' earnings expectations in 13 consecutive quarters by an average margin of 28.2%. In early-June, the company upped its fiscal 2006 revenue and profit guidance. Consensus estimates have been on the rise for CMTL. The company has a price-to-book ratio of 2.6, compared to 3.8 for the market. Full Analysis Comtech Telecommunications Corp. is engaged in the design, development, production, and marketing of products, systems and services for communications solutions. The company operates through three segments: telecommunications transmission, mobile data communications and RF microwave amplifiers. CMTL has a strong history of topping analysts' estimates, having done so for an amazing 13 quarters in a row. During that period of time, the average margin of surprise was 28.2%. Earnings per share are projected to grow 17% over the next 3-5 years, with the industry forecasted to grow 16%. On Jun 7, 2006, CMTL posted third-quarter fiscal 2006 profits of $8.7 million, or 33 cents per share. With the Street calling for 29 cents per share, the company beat the consensus estimate by 13.8%. CMTL reported third-quarter fiscal 2005 profits of $8.4 million, or 32 cents per share. Net sales rose 18.0% to $89.0 million, versus $75.4 million in the prior-year period. For the nine months ended Apr 30, 2006, net sales were up 39.0% to $291.3 million. Profits amounted to $33.5 million, or $1.27 per share, compared to $25.6 million, or $1.00 per share, in the prior-year period. Fred Kornberg, President and Chief Executive Officer, stated, "Although it is premature to provide specific revenue and earnings guidance for next year, current signs are that fiscal 2007 should also be a record year: our fifth in a row." On Jun 8, 2006, the company raised its fiscal 2006 revenue and earnings per share guidance. Revenues are expected between $377 and $382 million, $12 million higher than the CMTL's previous outlook. Earnings per share are estimated between $1.56 and $1.58-eight cents greater than its prior projection. Consensus estimates have been on the rise for this quarter and next quarter, jumping 6.7% and 21.2%, respectively, over the past 60 days. Profit forecasts for this fiscal year and next are up 4.6% and 6.0%, respectively, over the same period of time. Three analysts revised their forecasts upward for this year, while two followed suit for next year. CMTL has a price-to-book ratio of 2.6, compared to the market's multiple, as represented by the S&P 500, of 3.8. The company's return on equity absolutely crushes that of the industry average-20% compared to 3%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. 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

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(FSL) - FSL reported that its first-quarter profit more than doubled

Freescale Semiconductor, Inc. has exceeded earnings estimates in seven consecutive quarters. Three analysts have raised their numbers for this year, while two have done so for next year. Over the past 90 days, this year's estimates have risen 14.5% to $1.98 per share. FSL is currently trading at 13.1x next year's estimates of $2.03 per share, below the long-term growth rate of 15%, giving the stock a PEG ratio of 0.87. Full Analysis Freescale Semiconductor, Inc. (FSL) engages in the design, development, and manufacture of embedded semiconductors for the automotive, consumer, industrial, networking, and wireless markets worldwide. It operates through three segments: Transportation and Standard Products Group (TSPG), Networking and Computing Systems Group (NCSG), and Wireless and Mobile Solutions Group (WMSG). The company sells its products to original equipment manufacturers, original design manufacturers, and contract manufacturers through its own sales force, agents, and distributors. FSL reported that its first-quarter profit more than doubled, driven by particularly strong sales in the networking and computing, and wireless divisions. Net income rose to $212 million, or 48 cents per share, from $85 million, or 24 cents per share, last year. Revenue for the quarter was $1.53 billion, up nearly 6 percent from $1.44 billion. The Freescale team executed well in the first quarter," Michel Mayer, chairman and CEO, said in a prepared statement. "We are starting to see momentum in a number of key areas and our earnings growth continues to be strong." The company reports second-quarter results on July 20. The company has exceeded earnings estimates in seven consecutive quarters. Three analysts have raised their numbers for this year, while two have done so for next year. Over the past 90 days, this year's estimates have risen 14.5% to $1.98 per share. FSL is currently trading at 13.1x next year's estimates of $2.03 per share, below the long-term growth rate of 15%, giving the stock a PEG ratio of 0.87. Additionally, the stock is trading at only 0.8x book value, with a 15% return-on-equity. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. 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

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(GEF) - Profits for the quarter came in at $1.03 per share, beating the Street by 18.4%

Greif, Inc. (GEF) exceeded analysts' earnings expectations in the past three quarters by an average margin of 14.3%. The company recently posted record second-quarter net sales and upped its earnings per share guidance for fiscal 2006. The Board of Directors boosted its quarterly dividend by 50% in late-May. This Zacks #1 Rank stock is currently yielding 2.1% and has a five-year average dividend yield of 1.7%. Full Analysis Greif, Inc. is engaged in the manufacture and sale of industrial packaging products, and containerboard and corrugated products worldwide. The company has over 160 operating locations in more than 40 countries. When GEF reported second-quarter fiscal 2006 results on May 31, 2006, it marked the third straight quarter in which the company topped analysts' expectations. Profits for the quarter came in at $1.03 per share, beating the Street by 18.4% and soaring past earnings in the prior-year period by 27.2%. The average margin of surprise over the past three quarters amounted to 14.3%. Net sales hit an all-time high—$620.1 million, compared to $613.0 million in the second quarter of fiscal 2005. GEF increased revenues for the past nine years, while expanding gross margins and growing profits for the past two. For the first six months of fiscal 2006, all three were up when compared to the first half of fiscal 2005. Due to higher sales volumes and improved margins during the first half of fiscal 2006, GEF upped its fiscal 2006 earnings per share outlook. The company now expects profits between $3.85 and $3.95 per share. Its previous forecast called for earnings per share between $3.55 and $3.65, which also reflected an upward revision. Over the next 3-5 years, EPS are projected to grow 10.0%—in line with the forecasted growth rate of the industry. On May 30, 2006, the Board of Directors at GEF approved a 50% increase in the company's quarterly dividends. Owners of Class A Common Stock received a cash dividend of 36 cents per share, while Class B paid 54 cents per share. This represented the second straight year that GEF bumped its dividends by 50%. The company is currently yielding 2.1% and has a five-year average dividend yield of 1.7%. Chief Operating Officer and President of GEF, William B. Sparks Jr., is retiring effective Oct 31, 2006. He served at his current post since 2001 and has been with the company for 29 years. The company stated it does not have a timetable to find a replacement. It remains to be seen how his retirement will affect the long-term prospects of GEF. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. 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

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(OMM) - met or topped analysts' earnings expectations in the past seven quarters

OMI Corporation (OMM), a Zacks #1 Rank stock, met or exceeded the Street's earnings estimate for seven consecutive quarters. Analysts' profit forecasts have been trending higher. The Board of Directors at OMM recently declared a quarterly dividend of 10 cents per share and approved the repurchase of an additional $70 million of its common stock. The company has a price-to-book ratio of 1.8, compared to 3.8 for the market. Full Analysis OMI Corporation provides seaborne transportation services for crude oil and petroleum products in the international shipping markets. The company's customers include major independent and state-owned oil companies, major oil traders, government entities and various other entities. OMM met or topped analysts' earnings expectations in the past seven quarters. During this time frame the company surprised to the upside on six occasions by an average margin of 6.9%, and matched once. Earnings per share grew at a robust rate over the past five years—49.9%. Over the next 3-5 years, they are projected to grow at a 17% clip, compared to 16% for the industry. On Apr 24, 2006, OMM posted a 3.5% earnings surprise when it reported profits of $63.6 million, or 89 cents per share. When compared to the prior-year period, earnings were up four cents per share. Revenues increased 12.6% to $192.5 million, driven by more operating days and higher rates. Furthermore, global demand for oil was up about one million barrels per day over the prior year. The company is expected to release second-quarter results on Jul 26, 2006. Consensus estimates have been on the rise for this quarter and next quarter, jumping 12.1% and 31.6%, respectively, over the past 90 days. Three analysts revised their estimates upward for this quarter, while four did so for next quarter. Profit forecasts for this year and next are up 9.5% and 13.9%, respectively, over the same period of time. Five analysts revised their forecasts upward for this year and two followed in their footsteps for next year. On Jun 6, 2006, the Board of Directors declared a quarterly dividend of 10 cents per common share of stock. The company has a current dividend yield of 2.0% and a five-year average dividend yield of 0.79%. In late-April, the Board authorized the buyback of an additional $70 million of its common stock, bringing the total available for repurchase to approximately $100 million. OMM is currently trading at a valuation of 7.7x trailing 12-month earnings and at 8.1x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.2x trailing 12-month earnings and at 15.0x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.8, compared to the market's multiple of 3.8. OMM's return on equity tops that of the industry average—26% versus 17%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. 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

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