Interactive Data Corp.

Interactive Data Corp. (IDC) has performed admirably in a tough market as traders and investment professionals take advantage of market volatility to score gains.

Company Description

Interactive Data Corp. provides financial data, analytics and related services to financial institutions worldwide. The company was founded in 1992 and has a market cap of $2.45 billion.

IDC's core business involves selling data and analytical tools to the financial community. With extreme volatility sweeping across the markets for the past 18 months, demand for the company's services has remained strong, as seen by its fourth-quarter results, reported on Feb 19.

Fourth-Quarter Results

Revenue was up 6.6% from last year to $194.1 million. Income surged during the quarter, increasing 25.8% from last year to $40.1 million, producing earnings of 42 cents per share, 9 cents ahead of the consensus estimate.

This was the fourth time in the last 4 quarters that IDC has surprised and beat estimates, having done so by an average of 4 cents, or 13%.

CEO Speak

IDC president and chief executive Stuart Clark provided some texture to the results, saying that "Despite the unprecedented events across the global financial marketplace that occurred during the fourth quarter, our business remained resilient."

Estimates Hold Steady

Earnings estimates continue to hold in higher territory after the last revision, with the current-year estimate standing at $1.48 per share and the next-year pegged at $1.65, an 11.5% growth projection.

Valuations

Based upon the current-year estimate, this stock has a forward P/E multiple of 17X, a slight premium to the overall market.

The Chart

As previously mentioned, shares of IDC have been rallying since bottoming out with the overall market in late November just above the $15 mark. Since then, this stock has more than doubled in price, recently topping off above $33.50, take a look below.

Read the full analyst report on IDC