IHS Earnings: Everything You Must Know Now

IHS Inc. (NYSE:IHS) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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IHS Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 7.22% to $1.04 in the quarter versus EPS of $0.97 in the year-earlier quarter.

Revenue: Rose 7.99% to $418.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: IHS Inc. reported adjusted EPS income of $1.04 per share. By that measure, the company beat the mean analyst estimate of $1.03. It missed the average revenue estimate of $423.28 million.

Quoting Management: “We achieved our second quarter adjusted earnings per share target in spite of difficult global economic headwinds, and our margins continued to expand despite the adverse impact from recent acquisitions and certain discrete items, which has us trending lower in some of our guidance ranges,” said Scott Key, IHS president and chief executive officer. “In addition, we realized strong growth in free cash flow for the first half of 2013 for this key performance metric and driver of shareholder value creation.”

Key Stats (on next page)…

Revenue increased 9.3% from $382.53 million in the previous quarter. EPS increased 20.93% from $0.86 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.13 and has not changed. For the current year, the average estimate is a profit of $4.35, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)