GLF - Gulfmark Offshore - Estimates Continue To Rise

Gulfmark Offshore, Inc. (GLF) shares have been racing forward since bottoming out just above $33 on Jan 22, having since advanced beyond the $60 mark. Much of this recent price strength has been built on surging energy prices for both crude and natural gas, as exploration companies ramp up initiatives to pursue reserves in previously unprofitable offshore destinations.

Full Analysis

Gulfmark Offshore Inc. is a niche participant in the international offshore marine services industry. The company provides marine services primarily to offshore oil and natural gas exploration initiatives. Gulfmark's vessels transport drilling materials, supplies and personnel to offshore facilities, as well as move and position drilling structures. The majority of its operations are conducted in the North Sea, but also in Southeast Asia, Brazil, West Africa and India. Gulfmark was founded in 1996 and is based in Houston, Texas.

The big boom in the energy markets is making it worthwhile for exploration companies to seek out crude and natural gas in locations that were previously unprofitable. Offshore operations are becoming increasingly prevalent and relevant in the energy landscape, and this has been to the benefit to Niche players like Gulfmark that service these offshore operations.

Solid Fourth-Quarter and Full-Year Results

This dynamic is evident in both the companies fourth-quarter and full-year results, reported on Feb 25, and its consistently rising earnings estimates.

Revenue was up 33% t $91.5 million compared to the same quarter last year. Analysts were expecting revenue of $72.7 million. Income totaled $12.7 million, a sharp decline from last year due to a one-time tax law change in Norway and a new tax law in Mexico. After these adjustments, the company said it earned $1.74 per share, well ahead of analyst expectations and the $1.42 per share from the same quarter last year.

The company said higher day rates in Southeast Asia drove its revenue.

For the full-year, the company posted a profit of $99 million, or $4.29 per share, compared with $89.7 million, or $4.28 per share, in 2006. Revenue rose 22% to $306 million.

Estimates Continue To Rise

Analyst estimates continue to rise for Gulfmark, with the most recent round of revisions coming within the last 30 days, pushing the current-year estimate 12 cents higher to its current projection of $5.62.

Gulfmark also has an excellent history of surprising and beating analyst estimates, having done so for the last four quarters by an average of 26 cents, or 26.17%.

This company's stock price has been on a tear since bottoming out just above $33 per share on Jan 22. This stock has been consistently establishing new 52-week highs as it maintains its upward trajectory. With demand projected to stay strong, and earnings projections growing to reflect this dynamic, this company's stock looks well positioned to accelerate into higher territory.

Content Courtesy: Zacks Investment Research

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