World Fuel Services Corporation

World Fuel Services Corporation (INT - Snapshot Report) is a rare combination of a momentum and a value stock. INT was a Momentum Rank Buy on Nov 25 but it's also cheap, with a forward P/E of 12.04. World Fuel Services is firing on all cylinders as it posted record earnings per share in the third quarter.

Company Description

World Fuel Services sells marine, aviation and land fuel products and services to more than 2,500 airports, seaports and tanker truck loading terminals in over 190 countries. Customers include international container and tanker fleets as well as the United States and foreign governments.

INT Reports Record Third Quarter

On Nov 6, World Fuel Services reported record third-quarter earnings that beat Wall Street estimates by 140.35%. Net income soared 171% to $40.1 million, or $1.37 per share, from $14.8 million, or 51 cents, in the third quarter of 2007. Analysts expected 57 cents for the quarter.

Both the marine and the aviation segment generated record profit in the third quarter. The marine segment recorded gross profit of $63.2 million, a 135% year-over-year increase and up 42% from the prior quarter.

The aviation segment saw gross profit of $50.5 million, an increase of 52% from the year ago quarter and 12% higher than the prior quarter. Aviation benefited from higher jet fuel prices early in the quarter and tighter inventory levels late in the quarter.

The company continues to shore up its balance sheet and has plenty of liquidity to support its working capital requirements and investment opportunities going forward in the form of a $160 million accounts receivable facility, cash and a $475 million revolving credit facility.

Consensus Estimates Rise for 2008 and 2009

Covering analysts are bullish on the company. Full-year consensus estimates jumped 11 cents to $2.43 in the last 60 days. 2009 estimates are also higher in the last 2 months, rising 6 cents to $2.75 per share.

Value Fundamentals

World Fuel Services is a Zacks #1 Rank (strong buy) stock. INT has surprised on estimates 3 out of the last 4 quarters by an average of 51.69%.

It's trading with a forward P/E of 12.04. INT's price-to-book is 1.65. The company has an excellent 5-year average return on equity is 15.86%.