The numbers: Fourth-quarter net income declined 0.6% to $24 million, but earnings per share fell 10% to 18 cents, hurt by a larger float. Revenue increased 13% to $169 million. The operating margin remained steady at 29%. The balance sheet contains $110 million of cash and $1.8 billion of debt.
The stock: Digital Realty Trust has soared 89% in the past year. It sells for a price-to-projected-earnings ratio of 45, a discount to peers, but a premium to most other industries. Its PEG ratio of 1.5 is slightly below the industry average, but reflects costly shares based on expected growth. The REIT yields 3.6%.