McGraw Hill Financial Earnings: Here’s Why Investors are Excited Now

McGraw Hill Financial (NYSE:MHFI) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.59%.

McGraw Hill Financial Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 8.24% to $0.92 in the quarter versus EPS of $0.85 in the year-earlier quarter.

Revenue: Decreased 19.2% to $1.25 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: McGraw Hill Financial reported adjusted EPS income of $0.92 per share. By that measure, the company beat the mean analyst estimate of $0.82. It beat the average revenue estimate of $1.19 billion.

Quoting Management: “Our second quarter results topped strong first quarter performance, contributing to a great first half for this new Company,” said Harold McGraw III, Chairman, President, and Chief Executive Officer of McGraw Hill Financial. “The exceptional growth that the Company reported is a testament to the strength of our benchmark brands, our focus on cost control, and the benefit of returning cash to shareholders through meaningful share repurchases.” He continued, “Over the years I have worked to upgrade our portfolio of assets and drive meaningful shareholder return to our investors. With the Board of Directors’ selection of Doug Peterson as my successor to be the Company’s next President and CEO, I am confident that Doug will continue to build this great Company while rewarding our shareholders. Doug is a talented leader with deep industry knowledge, regulatory experience, and most importantly, unquestionable integrity.”

Key Stats (on next page)…

Revenue increased 5.84% from $1.18 billion in the previous quarter. EPS increased 15% from $0.80 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.81 to a profit $0.78. For the current year, the average estimate has moved up from a profit of $3.19 to a profit of $3.21 over the last ninety days.

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

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