The McGraw-Hill Companies Earnings Preview: Can This Streak Continue?

The McGraw-Hill Companies (NYSE:MHP) will report earnings before markets open on Tuesday, April 30th. Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy. Leading brands include Standard & Poor’s, McGraw-Hill Education, Platts energy information services and J.D. Power and Associates. The Corporation has approximately 21,000 employees with more than 280 offices in 40 countries. Sales in 2010 were $6.2 billion.

Here is your Cheat Sheet to The Mcgraw-hill Companies Earnings:

Earnings Expectations: Analysts expect earnings of $0.73 per share on revenues of $1.17 billion. Currently, the company’s P/E ratio stands at 33.94.

Analyst Trends:

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 $0.91 to a profit $0.79. For the current year, the average estimate is a profit of $3.19, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how The Mcgraw-hill Companies has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 6,355 5,952 3,639 3,954 4,450
Diluted EPS ($) 2.51 2.33 2.65 3.00 1.53

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions -772.00 1,331 1,547 1,953 -380.00
Diluted EPS ($) 0.7358 0.43 0.76 1.10 -0.7734

Past Performance:
The Mcgraw-hill Companies has beat analyst estimates 4 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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