Thursday, financial market data provider Interactive Data Corp. (IDC), reported an increase in profit for the third quarter, helped by a rise in revenues as well as a decline in expenses. The company lifted its guidance and reaffirmed revenue outlook for the full year.
Bedford, Massachusetts-based Interactive Data's third quarter net income attributable to the company rose by 17.5% to $43.13 million or $0.45 per share from $36.72 million or $0.38 per share in the third quarter last year. Excluding adjustments related to acquisitions and foreign exchange, income from operations increased by 13.3% to $57.66 million from $50.88 million a year earlier.
On average, four analysts polled by Thomson Reuters expected the company to report earnings of $0.35 per share. Analysts' estimates typically exclude one-time items.
Subsidiary of Pearson plc, Interactive Data's quarterly revenue increased by 1.9% to $192.1 million from $188.6 million in the year-ago period. On non-GAAP basis, excluding effects of acquisitions and foreign exchange, revenue was $193.90 million, up from $187.19 million a year-ago. Analysts expected revenues of $185.73 million for the quarter.
Ray D'Arcy, Interactive Data's president and chief executive officer said, "Organic revenue grew 3.6% in the third quarter of 2009 over the same period last year due to the resiliency in our fixed income evaluations and reference data product areas, and a solid performance in Europe."
North American revenue declined slightly by 0.1% to $133.03 million from $133.13 million a year-ago, European segment revenue rose moderately by 0.1% to $50.69 million from $50.64 million last year, and revenues from Asia-Pacific climbed 73.5% to $8.37 million from $4.82 million for the same period last year.
On segment basis, Interactive Data Real-Time Services generated revenue of $36.2 million, a drop of $1.9 million or 5.1% year-over-year. Interactive Data Fixed Income Analytics reported revenue of $8.2 million, which was essentially unchanged from last year. eSignal's third-quarter revenue was $20.9 million, a 7.3% decline from year-ago period.
For the third quarter, Kler's Financial Data Service S.r.l., which the company acquired in August 2008, contributed incremental revenue of $0.9 million and NTT DATA Financial, in which the company acquired an 80% interest in December 2008 and later acquired an additional 10% interest during the second quarter of 2009, contributed an incremental $2.2 million to third-quarter 2009 revenue.
Total costs and expenses declined moderately by 0.9% to $133.66 million from $134.91 million last year, helped by a 5.5% drop in selling, general and administrative expenses to $57.34 million from $60.73 million a year-ago.
For the nine-month period, net income attributable to the company rose 5.5% to $108.19 million or $1.13 per share from $102.54 million or $1.06 per share a year earlier. Revenues for the period rose slightly by 0.5% to $405.77 million from $403.86 million for the same period last year.
Amongst others in the industry, Morningstar, Inc. (MORN), reported a third-quarter net income attributable to the company of $22.52 million compared to $22.19 million last year. Earnings per share were $0.45, flat with last year. However, quarterly revenue dropped to $120.09 million from $125.51 million last year.
Interactive said the market conditions for the balance of 2009 are expected to remain challenging and overall spending on market data and related services by customers in the financial services industry in 2009 is being influenced by various factors including cost-containment activities, the impact of recent mergers and acquisitions, and overall economic conditions.
Looking forward, for the fiscal year 2009, the company expects income from operations to be roughly flat with 2008, compared to its prior guidance of a decline in income from operations to be in the low single digit range.
Fiscal year 2009 revenue is still expected to be roughly flat with 2008, which is unchanged from the prior quarter's guidance.
IDC closed at $25.90, up $0.03 or 0.12% on a volume of 0.30 million shares on NYSE. In the past 52 weeks, the stock trended in a broad range of $17.66 - $27.30, with a three-month average volume of 0.25 million shares.
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