Gulf Island Fabrication Offers Investors Growth and Value

Gulf Island Fabrication, Inc. (GIFI), a manufacturer of drilling and production platforms and other specialized structures for the oil and gas industry, is a double play as it offers investors both value and growth. Last week, it reported quarterly results above consensus expectations with EPS at $0.83 vs. $0.77 estimates and $0.55 last year; and revenue at $117.9mm vs. $116.25mm estimates and $137.6mm last year. Going forward, GIFI expects 2008 revenues at $144.9mm and 2009 revenues at 292.8mm.  Gulf Island Fabrication trades at a forward P/E of 14.39 and a PEG ratio at 0.81 while averaging earnings growth of 29.38% over the last four quarters.

Dissecting the company’s 10-Q, comments on its backlog provides investors visibility on its future growth prospects. The company estimated a revenue backlog at $437.7mm and a labor backlog at 4.6mm man-hours remaining to wo