IHS Beats Analyst Estimates on EPS

IHS (NYS: IHS) reported earnings on Jan. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Nov. 30 (Q4), IHS beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly, and earnings per share dropped significantly.

Gross margins expanded, operating margins contracted, net margins dropped.

Revenue details
IHS booked revenue of $371 million. The nine analysts polled by S&P Capital IQ expected to see a top line of $365 million. Sales were 25% higher than the prior-year quarter's $296 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.99. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.92 per share on the same basis. GAAP EPS of $0.35 for Q4 were 45% lower than the prior-year quarter's $0.63 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 60.4%, 220 basis points better than the prior-year quarter. Operating margin was 7.2%, 1,160 basis points worse than the prior-year quarter. Net margin was 6.1%, 790 basis points worse than the prior-year quarter.


Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $354 million.

Next year's average estimate for revenue is $1.5 billion. The average EPS estimate is $3.97.

Investor Sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 76 members out of 86 rating the stock outperform, and 10 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give IHS a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on IHS is outperform, with an average price target of $91.20.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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