McGraw-Hill Companies Inc. Earnings Cheat Sheet: Two Quarters in a Row of Rising Profit

S&P 500 (NYSE:SPY) component McGraw-Hill Companies Inc. (NYSE:MHP) reported its results for the second quarter. McGraw-Hill Companies, Inc. produces a range of information products and services for the education, financial services and business information markets.

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McGraw-Hill Companies Earnings Cheat Sheet for the Second Quarter

Results: Net income for McGraw-Hill Companies Inc. rose to $211.1 million (68 cents per share) vs. $191.1 million (61 cents per share) in the same quarter a year earlier. This marks a rise of 10.5% from the year earlier quarter.

Revenue: Rose 8.5% to $1.6 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: MHP beat the mean analyst estimate of 67 cents per share. It beat the average revenue estimate of $1.56 billion.

Quoting Management: “In the first quarter, we said a promising year was off to a good start and our second quarter results bear that out,” said Harold McGraw III, chairman, president and chief executive officer.”We have achieved the best first half revenue growth since 2007, driven by our new segment, McGraw-Hill Financial, Standard & Poor’s and Information & Media’s Business-to-Business Group, which all produced double-digit revenue increases in the second quarter.That performance offset a modest decline at McGraw-Hill Education, which was affected by delays in ordering and challenging comparisons.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the first quarter, by 3 cents in the fourth quarter of the last fiscal year, and by 13 cents in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 7.7% to $1.28 billion in the first quarter. The figure rose 4.2% in the fourth quarter of the last fiscal year from the year earlier and climbed 5.5% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now seen net income rise in two straight quarters. In the first quarter, net income rose 16.2% from the year earlier.

Competitors to Watch: Moody’s (NYSE:MCO), Reed Elsevier plc (NYSE:RUK), Reed Elsevier NV (NYSE:ENL), Thomson Reuters Corp. (NYSE:USA) (NYSE:TRI), Gannett Co., Inc. (NYSE:GCI), Meredith Corporation (NYSE:MDP), Scholastic Corporation (NASDAQ:SCHL), Pearson PLC (NYSE:PSO), News Corporation (NASDAQ:NWSA), and The New York Times Company (NYSE:NYT).

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(Source: Xignite Financials)

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