IHS Q3 Profit Falls, Revenue Climbs 25%; Backs Full Year View - Update

(RTTNews) - Business information provider IHS Inc. (IHS) Thursday reported lower profit for the third quarter, amid higher costs, even as revenues climbed 25 percent from last year. The company backed its full year outlook.

Net income declined to $23.36 million or $0.35 per share from $44.08 million or $0.66 per share in the same quarter last year.

Adjusted net income was $85.50 million or $1.27 per share, while it totaled $80.41 million or $1.20 per share last year. On average, 10 analysts polled by Thomson Reuters expected the company to report earnings of $1.18 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter climbed 25 percent to $480.29 million from $385.61 million in the prior-year quarter. Organic revenue growth was 5 percent. Analysts had a consensus revenue estimate of $468.48 million for the quarter.

Product revenues increased to $423.48 million from $339.95 million while Services revenue climbed to $56.81 million from $45.66 million.

Subscription revenue climbed 24 percent to $365.03 million while non-subscription revenue was 27 percent higher at $115.26 million.

Geographically, revenue climbed 32 percent in the Americas and 13 percent in Europe, Middle East and Africa. APAC revenue rose 13 percent.

Total operating expenses increased to $440.86 million from $329.35 million, amid higher cost of revenue as well as increased Selling, general and administrative costs.

Scott Key, CEO said, "Positive third-quarter results were highlighted by our best overall organic revenue growth rate yet this year and very strong initial results from our recent R.L. Polk acquisition."

For the year ending November 30, 2013, the company still expects adjusted earnings per share to be in a range of $4.75 to $5.00 per share, and revenue of $1.80 billion to $1.82 billion. Analysts expect the company to report earnings of $4.88 per share on revenues of $1.81 billion.

IHS closed at $114.90 on Thursday.