IHS Q2 Profit Rises, Results Top Estimates - Update

(RTTNews) - Business information provider IHS, Inc. (IHS) Thursday reported higher second-quarter profit, as revenues climbed 36 percent helped by performance in each of its three regions and in each product category. Adjusted earnings, as well as revenue beat analysts' expectations.

For the second quarter ended May 31, the company posted net income of $55.49 million or $0.81 per share, higher than $42.89 million or $0.65 per share in the prior-year quarter.

On an adjusted basis, earnings per share were $1.47, while the firm posted $1.26 per share last year. On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $1.44 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter climbed 36 percent to $568.01 million from $418.14 million reported last year. Organic revenue growth was 6 percent, aided by 6 percent organic revenue growth in Subscription. Thirteen analysts projected second-quarter revenues of $551.27 million.

Subscription revenue grew 36 percent to $426.35 million, and non-subscription revenue also was up 36 percent to $141.66 million.

In the Americas, second quarter revenue increased 46 percent, while revenues from EMEA rose 23 percent from the prior year. Quarterly revenue from APAC was up 10 percent from the year-ago quarter.

For the fiscal year ending November 30, IHS expects adjusted earnings per share to be in the range of $5.50 to $5.85.

Revenues are anticipated to be between $2.17 billion and $2.23 billion, including 6 to 7 percent organic growth on the subscription base. Analysts project annual earnings per share of $5.77, on revenues of $2.23 billion for the year.

IHS closed Wednesday's regular trading at $130.19 on the NYSE.