IHS Q2 Profit Tops Estimates; Raises FY15 Guidance; Announces Share Buyback

(RTTNews) - IHS Inc. (IHS), the leading global source of information and analytics, reported second-quarter net income of $50.95 million or $0.74 per share, compared to $55.49 million or $0.81 per share, prior year. Adjusted earnings per share was $1.50, for the quarter.

On average, 15 analysts polled by Thomson Reuters expected the company to report profit per share of $1.45 for the quarter. Analysts' estimates typically exclude special items.

Adjusted EBITDA increased to $185.10 million from $172.73 million, a year ago.

Revenue increased 4 percent to $591.41 million from $568.01 million last year. Analysts expected revenue of $575.37 million for the quarter. Total organic revenue growth was 1 percent, with 5 percent subscription organic revenue growth.

Total operating expenses increased year-over-year to $508.48 million from $481.23 million.

For the year ending November 30, 2015, IHS raised guidance. The company now expects: revenue in a range of $2.30 billion to $2.34 billion, including 5-6 percent subscription organic growth and negative non-subscription organic growth; adjusted EBITDA in a range of $725 million to $740 million; and adjusted EPS in a range of $5.80 to $6.00. Analysts expect the company to report fiscal 2015 earnings per share of $5.85 on revenue of $2.28 billion.

IHS also announced that its board has approved a new program to repurchase up to $500 million of IHS Class A common stock. The repurchase program is scheduled to expire on November 30, 2017.