U.S. markets closed
  • S&P Futures

    +6.50 (+0.14%)
  • Dow Futures

    +79.00 (+0.23%)
  • Nasdaq Futures

    +3.00 (+0.02%)
  • Russell 2000 Futures

    +10.00 (+0.45%)
  • Crude Oil

    +0.87 (+1.24%)
  • Gold

    +6.00 (+0.34%)
  • Silver

    +0.15 (+0.65%)

    +0.0017 (+0.15%)
  • 10-Yr Bond

    +0.0480 (+3.24%)
  • Vix

    -5.66 (-19.78%)

    +0.0009 (+0.07%)

    +0.0510 (+0.04%)

    -150.05 (-0.26%)
  • CMC Crypto 200

    +20.57 (+1.44%)
  • FTSE 100

    +65.92 (+0.94%)
  • Nikkei 225

    +214.99 (+0.76%)

IHS Markit's (INFO) Q1 Earnings Beat Estimates, Improve Y/Y

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

IHS Markit Ltd. INFO reported mixed first-quarter fiscal 2020 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

Adjusted earnings per share of 66 cents beat the consensus mark by 4.8% and increased 10% on a year-over-year basis. Total revenues came in at $1.08 billion, marginally missing the consensus mark but improving 3% from the year-ago quarter.

We observe that shares of IHS Markit have decreased 16.3% over the past year compared with 14.1% decline of the industry it belongs to.

Quarterly Details

Revenues at the Resources segment totaled $226 million, up 4% year over year, with 1% organic growth. The Transportation segment experienced year-over-year revenue growth of 3% to reach $297 million and included organic growth of 9%.

Revenues at the CMS segment amounted to $122 million, down 8% year over year, with 3% organic growth. Financial services segment’s revenues increased 7% year over year to $436 million, with 7% organic growth.

Recurring fixed revenues of $8.4 million rose 5% year over year on a reported basis and 7% on an organic basis. Recurring variable revenues of $147 million grew 8% year over year on a reported as well as organic basis. Non-recurring revenues totaled $130 million, down 9% year over year on a reported basis and 5% on an organic basis.

Adjusted EBITDA of $431.6 million increased 5.8% from the year-ago quarter. Adjusted EBITDA margin improved 90 points (bps) year over year to 39.9%.

IHS Markit ended the quarter with cash and cash equivalent balance of $143.9 million compared with $111.5 million in the prior quarter. Long-term debt was $5 billion compared with $4.9 billion in the previous quarter.

Cash flow from operations and free cash flow amounted to $119.5 million and $117.4 million, respectively, in the quarter. CapEx was $78 million. The company repurchased $500 million of shares in fiscal 2019.

Zacks Rank and Stocks to Consider

Currently, IHS Markit has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Business Services sector are Sykes Enterprises SYKE, Omnicom OMC and Genpact G, each carrying a Zacks Rank #2 (Buy).

Long-term expected EPS (three to five years) growth rate for Sykes, Omnicom and Genpact is 10%, 5.6% and 14%, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Omnicom Group Inc. (OMC) : Free Stock Analysis Report
Sykes Enterprises, Incorporated (SYKE) : Free Stock Analysis Report
Genpact Limited (G) : Free Stock Analysis Report
IHS Markit Ltd. (INFO) : Free Stock Analysis Report
To read this article on Zacks.com click here.