McGraw-Hill Companies (NYS: MHP) is expected to report Q4 earnings on Feb. 12. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict McGraw-Hill Companies's revenues will grow 5.9% and EPS will increase 14.3%.
The average estimate for revenue is $1.61 billion. On the bottom line, the average EPS estimate is $0.72.
Last quarter, McGraw-Hill Companies notched revenue of $1.95 billion. GAAP reported sales were 2.4% higher than the prior-year quarter's $1.91 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $1.33. GAAP EPS of $1.10 for Q3 were 9.1% lower than the prior-year quarter's $1.21 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 65.2%, 250 basis points better than the prior-year quarter. Operating margin was 32.1%, 30 basis points better than the prior-year quarter. Net margin was 16.1%, 310 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $6.45 billion. The average EPS estimate is $3.45.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 481 members out of 529 rating the stock outperform, and 48 members rating it underperform. Among 225 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 203 give McGraw-Hill Companies a green thumbs-up, and 22 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on McGraw-Hill Companies is outperform, with an average price target of $56.50.
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The article What to Expect from McGraw-Hill Companies 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. The Motley Fool owns shares of The McGraw-Hill Companies. 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.