Earnings Review and Free Research Report: IHS Markit’s Quarterly Revenue Surged 54%; Net Income Soared 99%
LONDON, UK / ACCESSWIRE / July 7, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on IHS Markit Ltd (NASDAQ: INFO), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=INFO, following the Company's release of its second quarter 2017 financial results on June 27, 2017. The financial services provider surpassed earnings expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Earnings Reviewed
For the second quarter ended May 31, 2017, IHS Markit recorded revenue of $906 million, up 54% compared to revenue of $587.9 million in Q2 2016, including reported organic revenue growth of 5% and normalized organic revenue growth of 3%. The Company's revenue numbers surpassed analysts' expectations of $900.1 million
For Q2 2017, IHS Markit's net income totaled $99 million and diluted earnings per share (EPS) were $0.24 compared to net income of $50.0 million, or $0.21 per share, in Q2 2016. The Company posted adjusted earnings per diluted share of $0.52 in the reported quarter compared to $0.45 in the prior year's same quarter. IHS Markit's earnings results met Wall Street's forecasts of $0.52 per share.
IHS Markit recorded adjusted EBITDA of $353 million for Q2 2017, up 76% compared to $200.5 million in Q2 2016. During Q2 2017, IHS Markit's cash flow from operations was $201 million and free cash flow was $142 million.
Operating Performance
During Q2 2017, IHS Markit's Resources segment's revenue increased 1% to $224 million and declined 6% organically for the recurring-based business. In the reported quarter, adjusted EBITDA for resources increased $6 million, or 7%, to $100 million, primarily due to the shift in timing of the Company's annual CERAWeek conference. On a year-to-date basis, revenue for resources decreased 4% to $421 million, while adjusted EBITDA for resources decreased $1 million, or 1%, to $180 million.
For Q2 2017, IHS Markit's Transportation segment's revenue jumped 5% to $242 million and included 9% organic growth for the recurring-based business. The reported quarter adjusted EBITDA for Transportation increased 8% to $98 million. The year-to-date revenue for Transportation increased 8% to $467 million, while adjusted EBITDA surged 15% to $188 million.
IHS Markit's consolidated Markets & Solutions (CMS) segment revenue grew 4% to $131 million and had 1% organic growth for the recurring-based business. Adjusted EBITDA for CMS increased $1 million, or 3%, to $32 million in the reported quarter. The year-to-date revenue for CMS fell 4% to $257 million and adjusted EBITDA for CMS increased 3% to $60 million.
During Q2 2017, IHS Markit's revenue for Financial Services totaled $309 million and included 8% total organic growth, and adjusted EBITDA for Financial Services was $139 million. The year-to-date revenue for Financial Services was $605 million while adjusted EBITDA was $268 million.
Outlook
For the year ending November 30, 2017, IHS Markit is forecasting revenue in a range of $3.490 billion to $3.560 billion, including the total organic growth of 2% to 4%. The Company is estimating adjusted EBITDA in a range of $1.375 billion to $1.400 billion and adjusted EPS in a range of $2.02 to $2.08 per diluted share.
Additionally, for FY17, IHS Markit expects depreciation expense to be approximately $155 million to $165 million and net interest expense to be approximately $145 million to $150 million. The Company is projecting capital expenditures to be approximately 7% to 8% of revenue and free cash flow conversion as a percentage of adjusted EBITDA in the mid-50s.
Stock Performance
At the closing bell, on Thursday, July 06, 2017, IHS Markit's stock marginally fell 0.92%, ending the trading session at $43.93. A total volume of 1.89 million shares has exchanged hands. The Company's stock price soared 4.79% in the last three months, 21.35% in the past six months, and 36.34% in the previous twelve months. Moreover, the stock rallied 24.06% since the start of the year. The stock is trading at a PE ratio of 86.48 and currently has a market cap of $17.60 billion.
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