Trico Marine Services, Inc.: Strong Q4, Full Year Results

Trico Marine Services, Inc. (TRMA) has been the benefactor of strong international growth and very favorable international tax regulations, both of which contributed to the company's very strong fourth quarter and full-year results, reported on Feb 19. Income more than doubled from the previous quarter to $30.1 million. The company also announced that it had completed a key acquisition that would enable it to participate in the high-growth segment of underwater exploration.

Trico Marine Services, Inc., provides marine support vessels to the offshore oil and gas industry. Its fleet of vessels provides a range of services to offshore oil and gas operators, including the transportation of drilling materials, supplies, and crews to drilling rigs and other offshore facilities. The company has operations in the North Sea, west Africa, Mexico, Brazil, southeast Asia, and the U.S. Gulf of Mexico. Trico Marine Services, Inc. was founded in 1993 and is headquartered in Houston, Texas.

Trico reported very strong fourth-quarter and full-year results on Feb 18. Income for the quarter totaled $30.7 million on revenue of $65 million, producing earnings of $2.08 per share, well ahead of analyst estimates. The company did not release last year's results, but income more than doubled when compared to its third quarter results.

Full-year income was $62.9 million, producing earnings of $4.16 per share.

The company cited a number of factors that drove the sharp growth in income. Its North Sea operations saw strong pricing increases. In addition, Norwegian tax charges tacked on and additional 89 cents to earnings.

The strong quarterly results mark the fourth time in four quarters that Trico has surprised and beaten estimates, having done so by an average of 20 cents, or 27%.

Trico also announced that it had completed its acquisition of Active Subsea ASA for $247 million. The company considers this a key acquisition because it will enable it to compete in the quickly growing space of under-water exploration activities that had been spurned by higher crude prices and the depletion of "easy access" crude deposits.

There are only two covering analysts for the company, but they have been bullish on the prospects of the company's future earnings. The current-year estimate has been on the rise, jumping 22 cents higher in the last 30 days and moving to its current reading of $3.27 per share. Analysts are projecting next-year earnings of $4.70 per share, which would represent a significant jump in earnings.

Naturally, this micro-cap's stock price has responded accordingly to the good news. Since the results hit the street on Feb 19 the company's shares have advanced from $33 to over $41, an impressive 24% short-term gain.

Moving forward, the focus of the chart is the wedge formation that is squeezing shares into a consolidation pattern. As shares continue to establish higher lows within the channel and apply upward pressure to the top-side of the channel, momentum is clearly in this stock's favor. Look for shares to eventually breakout from the consolidation formation and advance to the 52-week high which is close by at just above $43.