INT World Fuel Services Corporation

For the second quarter in a row, World Fuel Services Corporation (INT) reported record quarterly earnings on the back of a strong aviation segment. This Zacks #1 Rank (strong buy) also has attractive valuations, including a P/B ratio of just 2.2.

World Fuel Services sells marine, aviation and land fuel products to clients at more than 6,000 locations in 200 countries. Customers include airports, seaports, tanker truck loading terminals and other storage locations.

World Fuel Services Beat the Zacks Consensus Again

On Nov 1, World Fuel Services reported its third quarter results and surprised on the Zacks Consensus for the 14th straight quarter. It is an impressive earnings surprise track record given what has happened in the global economy over that time period.

Earnings per share were 80 cents compared to the consensus of 64 cents. It made 66 cents in the third quarter of 2010.

The aviation segment propelled the year over year numbers. Gross profit rose 50% to $84 million on "positive market dynamics." The marine segment saw gross profit rise 22% to $50 million versus the year ago quarter.

The land segment, which is the smallest segment, also saw gains in gross profit, which jumped 144% to $36.8 million.

Zacks Consensus Estimates Rise

Given yet another earnings surprise, it's not surprising that the analysts raised full year estimates.

The 2011 Zacks Consensus Estimate jumped to $2.69 from $2.58 in the last month.

That is earnings growth of 11% as the company made $2.42 in 2010.

Continued earnings growth of 10.4% is expected in 2012 with the Zacks Consensus rising to $2.97 from $2.87 over the prior 30 days.

Shares Are Still Hot

Shares recently hit new 52-week highs and have impressively barely budged off those highs on recent general stock market weakness.

Still, World Fuel Services is a value stock. It has a forward P/E of 14.8, which is just under the cut-off I use for value stocks which is 15x.

Its other metrics exude value, however. It has a price-to-book under 3.0 at 2.2 and its price-to-sales ratio of just 0.1 is well under the 1.0 level which is considered to be a "value".

Additionally, World Services has a solid 1-year return on equity (ROE) of 16.4%.

World Fuel Services has been consistently beating on the estimate and growing its earnings while its valuation remains low.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Turnaround Trader and Insider Trader services. You can follow her on twitter at traceyryniec.

 
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