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Is a Beat in Store for IHS Markit (INFO) in Q1 Earnings?

Zacks Equity Research

IHS Markit Ltd. INFO is scheduled to release first-quarter fiscal 2019 results on Mar 26, before market open.

Shares of the company have gained 13.6% in the past year compared with the industry’s rise of 8.7%.

Let’s see how things shape up for this announcement.

Top-Line Expectations

The Zacks Consensus Estimate for first-quarter fiscal 2019 revenues is pegged at $1.06 billion, indicating year-over-year growth of 13.7%. The company’s Energy, Automotive, Consolidated Markets & Solutions (CMS) and Financial Services businesses are expected to remain in good shape through 2019.

In fourth-quarter fiscal 2018, total revenues of $1.07 billion increased 13% on a year-over-year basis.

Earnings Likely to Rise Year Over Year

The Zacks Consensus Estimate for earnings per share (EPS) in the to-be-reported quarter is pegged at 57 cents, indicating year-over-year rise of 7.5%. The expected growth is likely to be driven by streamlining of internal processes, higher customer engagement as well as prudent investments in technology and product development.

In fourth-quarter fiscal 2018, adjusted EPS of 57 cents increased 10% year over year.

IHS Markit Ltd. Price and EPS Surprise


IHS Markit Ltd. Price and EPS Surprise | IHS Markit Ltd. Quote


Our Model Suggests a Beat

Please note that according to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP.

IHS Markit has a Zacks Rank #2 and an Earnings ESP of +0.53%, a combination that increases the odds of an earnings beat.

Stocks with a Zacks Rank #4 (Sell) or 5 (Strong Sell) are best avoided, especially if the companies are witnessing negative estimate revisions. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are a few stocks from the Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat estimates.

Avis Budget Group, Inc. CAR has an Earnings ESP of +19.61% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

DocuSign, Inc. DOCU has an Earnings ESP of +3.87% and a Zacks Rank #3.

Accenture plc ACN has an Earnings ESP of +1.91% and a Zacks Rank #3.

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Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report
IHS Markit Ltd. (INFO) : Free Stock Analysis Report
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DocuSign Inc. (DOCU) : Free Stock Analysis Report
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