(ISE) - Revenue increased 38.2 percent year-over-year

International Securities Exchange has only been public for six quarters, but it has met or exceeded earnings estimates in five of them. Five analysts have raised their estimates for both this year and next. Over the past two months, this year's estimates have increased eight cents to $1.32 per share, while next year's numbers jumped 11 cents to $1.57 per share. The stock is trading at 27.3x next year's estimate, above the projected long-term growth rate of 19.59%, giving the stock a PEG ratio of 1.39. Full Analysis International Securities Exchange, Inc. (ISE) operates as an electronic exchange for equity options and related services in the United States. It provides a trading platform in listed equity and index options; and related services that are designed to improve the market for equity options. The company lists options on the common stock, other equity securities of publicly traded companies, and on indexes comprised of such equity securities. It also develops products, such as options trading based on proprietary sector indexes and market-data related offerings based on data generated by market activity on its exchange. ISE reported a strong second-quarter in late-July coming in with 35 cents per share, 9% ahead of the consensus estimate of 32 cents. Revenue increased 38.2 percent to $51.1 million from $37 million in the year-ago period. Equity option volume averaged a record 2.4 million contracts per day, up by almost half since the year-ago period. Charges for those transactions drove fee revenue to $40.7 million from $27 million a year earlier. Third-quarter earnings will be released on October 26. "We have been successful in growing our institutional business and the volume that we derived from our institutional functionalities accounted for approximately 21 percent of our total average daily trading volume for the quarter," said President and Chief Executive David Krell. The company went public in March 2005 and projects it will continue to expand its business in future quarters as it enters the equities market. ISE said it plans to open the ISE Stock Exchange to better compete with other exchanges. ISE has only been public for six quarters, but it has met or exceeded earnings estimates in five of them. Five analysts have raised their estimates for both this year and next. Over the past two months, this year's estimates have increased eight cents to $1.32 per share, while next year's numbers jumped 11 cents to $1.57 per share. The stock is trading at 27.3x next year's estimate, above the projected long-term growth rate of 19.59%, giving the stock a PEG ratio of 1.39. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home