Rob Black's Financial Market Roundup For April 25 (AFL, CME, TRAD, NDE)

There are many things to like about Aflac Inc. (AFL) from an investment standpoint. The company is Japan’s leading provider of stand-alone medical insurance policies and cancer insurance and the largest seller of voluntary insurance products in the United States. Aflac’s superior operating efficiency (which allows it to price competitively), strong brand name, broad distribution, and financial strength should sustain its leading positions in both markets, in our view.

Moreover, Aflac’s historical financial performance is remarkable. The company has posted at least 15% operating EPS growth in each of the past 16 years, increased its dividend per share for 24 consecutive years, and has the highest return on equity [ROE] in the insurance universe (23.6% in 2005). On a constant currency basis, expect Aflac to post 15% annual EPS growth through at least 2008.

Chicago Mercantile Exchange (CME) said income rose 29% to $91.4 million versus $70.9 million a year ago. Revenue rose to $263.4 million, from $214.2 million a year ago. The company said its average daily volume rose 26% in the quarter to 5 million contracts.

Tradestation (TRAD) said income rose 84% as daily average revenue trades climbed 48% in the month of March. The company said income in the quarter was $7 million compared to $3.8 million a share last year. Revenue rose to $29.4 million from $21.8 million a year ago. Daily average revenue trades in March totaled 59,107 compared to 39,960 a year ago, and in the first quarter, they were 59,057 compared to 39,801. TRAD says they are focused on growth of active trader business in the U.S., growth in their institutional business and growth outside the U.S.

IndyMac Bancorp (NDE) said income rose 27% to $80 million from $63 million a share in the year-ago period. Revenue rose 20% to $304.5 million. Citing growth prospects in the reverse mortgage market and other factors, the company hiked its 2006 earnings forecast.