IHS Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

IHS (NYS: IHS) reported earnings on June 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended May 31 (Q2), IHS met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.


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

Revenue details
IHS reported revenue of $387.2 million. The nine analysts polled by S&P Capital IQ anticipated revenue of $383.8 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $323.1 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.97. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.94 per share. GAAP EPS of $0.66 for Q2 were 8.2% higher than the prior-year quarter's $0.61 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 57.3%, 100 basis points better than the prior-year quarter. Operating margin was 16.7%, 20 basis points worse than the prior-year quarter. Net margin was 11.4%, 100 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $400.9 million. On the bottom line, the average EPS estimate is $1.02.

Next year's average estimate for revenue is $1.56 billion. The average EPS estimate is $3.98.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 81 members out of 92 rating the stock outperform, and 11 members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give IHS a green thumbs-up, and four 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 $99.73.

The article IHS Beats Analyst Estimates on EPS originally appeared on Fool.com.

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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