Ebix (EBIX), one of my new Emerging Growth stocks this month, just reported solid earnings for the fourth quarter. Revenue rose 65% to $20.14 million, and earnings-per-share came in at 66 cents compared with 40 cents for the fourth quarter of 2007. That’s very impressive growth.
The company sells insurance industry software products and services in Asia, Australia, Europe and North America. Ebix isn’t your standard IT firm, however. The company’s Ebix.com web site acts as an online auctionhouse for auto, home, health, life and other types of insurance-and Ebix gets a fee on each transaction. It’s cutting-edge applications like this that make Ebix an industry leader.
Since Ebix is a fairly small company, just $200 million in market cap, there are no Wall Street analysts who cover it. That’s a shame because the fundamentals are outstanding and the stock is an excellent buy.