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I last wrote about oil services firm Tidewater (NYSE:TDW) when the shares were changing hands at $49. They now trade at $57 a share. The original article ran just after the company beat earnings estimates, so it seems appropriate to revisit Tidewater's growth story now that it has delivered another stellar earnings report.

Here are several positives from Tidewater's earnings report:

  • Earnings per share came in 95 cents a share, an impressive 34 cents above consensus.
  • Quarterly revenues were $328.3 million, more than $10 million over estimates.
  • Operating margin increased to 17.8% from 16%.
  • Average day rates on Tidewater's vessels rose 16% year over year.
  • The company also recently announced it will purchase The Troms Offshore-owned fleet, which consists of five large, modern and technically advanced deepwater Platform Supply Vessels for $395 million. This will increase Tidewater's exposure to North Sea opportunities.
  • The company also just approved a $200 million repurchase plan.

Tidewater provides offshore service vessels and marine support services through the operation of a fleet of marine service vessels.

Here are four additional reasons why TDW can shoot higher from $57 a share:

  1. Revenue growth came in with better than 15% gains in FY 2013. Analysts expect similar growth in FY 2014. The stock sports a minuscule five-year projected PEG (.45).
  2. The company has now easily beat earnings estimates for four straight quarters. The average beat over consensus during that time frame has been north of 25%.
  3. Earnings are ramping up impressively. The company made just under $2 a share in FY 2012. With this earnings report, total earnings for FY 2013 came in at over $3 a share. Analysts expect over $4 a share of earnings in FY 2014.
  4. TDW is selling for less than 14x forward earnings, very reasonable given the company's projected growth rate. The stock also provides a 1.7% dividend yield.
Source: Fast-Growing Tidewater Blows Through Estimates Again