HOME ZACKS RESEARCH FUNDS PORTFOLIO BROKER RESEARCH MARKETS SCREENING EDUCATION SERVICES
Zacks Rank    Equity Research    Premium Home    My Account    Help    
A Better Way to Make Money in Today's Market
Learn more now >>
Quote:
Login Free Membership
Search:

 
Analyst Blog  

TK Shipping Outlook Adjusted

December 22, 2008 | Comments: 0
Recommended this article (1)
TK
Print    Share

We are maintaining our Hold on Teekay Corporation (TK - Analyst Report), but reducing our target price to $16. Yesterday, TK issued a press release stating that it expects to report third quarter results in January upon completion of review by its auditors. In the meantime, TK believes that EPS will come in higher than the current $1.01 consensus estimate.

This view is supported strong spot tanker freight rates, reflecting higher volumes of OPEC oil production and rising crude oil import volumes into the United States, China and India, as well as a dampening of tanker supply growth due to the removal of tankers from the global fleet for conversion and scrapping.

We are raising our 2008 diluted EPS estimate to $4.00 from $3.75, but cutting our 2009 estimate to $2.75 from $4.00. Results should reflect the impact of global economic weakening on both spot rates and shipping volumes. We note that TK recently released restated financial results for the first half related to changes in the accounting treatment for derivatives, which we have incorporated into our full report.

TK also recently announced a 15% increase in the annual dividend rate to $1.265 and a $200 million stock repurchase plan.

Read the full analyst report on TK



Email

Print

Share

RSS

Rate Pos

Rate Neg

Comment
Read/Post Comments (0) | Recommended this article (1)
 Posting Comment...
There was a problem posting this this comment. Please try back later.
[CLICK TO CLOSE X]
Comments (Limit 1000 Characters - Used: 0)
Display Name: Email Address:  
 Loading Comments...
Be the first to comment on this article!

More Zacks Resources

Market Summary Nov 08, 2009 12:13 pm ET
DJIA 10023.42  17.46 0.17%
NASD 2112.44  7.12 0.34%
S&P 500 1069.3  2.67 0.25%
Sponsored Links