The McGraw-Hill Companies, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component The McGraw-Hill Companies, Inc. (NYSE:MHP) will unveil its latest earnings on Thursday, July 28, 2011. McGraw-Hill Companies, Inc. produces a range of information products and services for the education, financial services and business information markets.

The McGraw-Hill Companies, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 67 cents per share, a rise of 9.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 66 cents. For the year, analysts are projecting net income of $2.88 per share, a rise of 7.1% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 2 cents, reporting profit of 39 cents per share against a mean estimate of net income of 37 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $1.56 billion in revenue this quarter, a rise of 6.1% from the year ago quarter. Analysts are forecasting total revenue of $6.48 billion for the year, a rise of 5% from last year’s revenue of $6.17 billion.

Analyst Ratings: Analysts are bullish on McGraw-Hill Companies as four analysts rate it as a buy, none rate it as a sell and four rate it as a hold.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 7.7% to $1.28 billion in first quarter. The figure rose 4.2% in the fourth quarter of the last fiscal year from the year earlier, climbed 5.5% in the third quarter of the last fiscal year from the year-ago quarter and 0.6% in the second quarter of the last fiscal year.

The company has now been profitable for the last eight quarters, and for the last four, profit has risen year over year by an average of 9.4%. The quarter with the biggest boost was the second quarter of the last fiscal year, which saw a 16.4% surge.

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).

Stock Price Performance: During April 27, 2011 to July 22, 2011, the stock price had risen $5.06 (13%) from $38.86 to $43.92. The stock price saw one of its best stretches over the last year between November 26, 2010 and December 9, 2010 when shares rose for 10-straight days, rising 5.1% (+$1.72) over that span. It saw one of its worst periods between November 5, 2010 and November 23, 2010 when shares fell for 13-straight days, falling 12.6% (-$4.85) over that span. Shares are up $7.96 (+22.1%) year to date.

(Source: Xignite Financials)

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