IHS 3Q profit up 65 pct, boosted by acquisitions

IHS reports 65 pct gain in fiscal 3rd-quarter as acquisitions help produce record results

• On 5:06 pm EDT, Thursday September 17, 2009

ENGLEWOOD, Colo. (AP) -- IHS Inc., a provider of energy and security information to governments and large companies, said Thursday its fiscal third-quarter profit soared 65 percent, helped by acquisitions that lifted overall revenue.

Net income jumped to a record $34.7 million, or 54 cents per share, for the three months ended Aug. 31. That compares with net income of $21 million, or 33 cents per share, during the same period a year earlier.

Adjusted earnings were 66 cents per share, up 18 percent from the prior-year period. The quarterly earnings were the company's highest on record, according to IHS.

Revenue grew 15 percent to $239 million. That included organic revenue growth of 2 percent, with the subscription-based portion of the business -- 80 percent of total revenue -- rising 9 percent. Acquisitions accounted for 17 percent of the increase.

Analysts expected a profit of 60 cents per share on revenue of $234.8 million, according to a survey by Thomson Reuters. Wall Street estimates typically exclude special items.

IHS also raised its revenue outlook for fiscal 2009, saying it now expects growth of 14 percent to 15 percent. That amounts to revenue of $1.04 billion to $1.08 billion. Analysts expect fiscal 2009 revenue of $960.7 million.

IHS previously forecast growth of 12 to 16 percent.

The company said it plans to provide full 2010 guidance in December.

Shares of IHS rose 72 cents, or 1.4 percent, to $53.02 in after-hours trading.

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