IHS Lifts Fiscal 2013 Outlook To Reflect R.L. Polk Acquisition - Update

(RTTNews) - Business information provider IHS, Inc. (IHS) Tuesday lifted its earnings and revenue outlook for the fiscal year ending November 30, 2013, to reflect acquisition of R.L. Polk & Co., which was completed on July 16.

It was on June 10, that IHS agreed to acquire automotive information and marketing solutions provider R.L. Polk for $1.4 billion. IHS expects the acquisition to be significantly accretive to its 2014 earnings per share, excluding purchase price amortization.

For fiscal year 2013, the company now expects adjusted earnings per share to be in a range of $4.75 to $5.00, up from the previous guidance of $4.23 to $4.43 per share.

Revenues are anticipated to be between $1.80 billion and $1.82 billion; an increase from $1.66 billion and $1.73 billion projected earlier. IHS now sees adjusted earnings before interest, tax, depreciation and amortization or EBITDA in a range of $540 to $560 million.

On average, nine analysts polled by Thomson Reuters expect the company to report fiscal 2013 earnings per share of $4.30, on revenues of $1.67 billion. Analysts' estimates typically exclude special items.

The company noted that the outlook assumes no further currency movements, acquisitions, divestitures, pension mark-to-market adjustments or unanticipated events.

Scott Key, president and chief executive officer of IHS stated, "We are excited about the value we are creating through the combination of IHS and R.L. Polk, and the $0.40-$0.50 of incremental Adjusted EPS we expect it to add to IHS in 2014. We also continue to see solid organic growth for the remainder of 2013..."

IHS closed Monday's regular trading session at $115.91 on the NYSE.