IHS Q1 Results Top Estimates, Reaffirms 2014 Outlook

(RTTNews) - Business information provider IHS, Inc. (IHS) reported Thursday a profit for the first quarter that grew 31 percent from last year, reflecting lower charges and strong double-digit revenue growth. Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also reaffirmed its earnings and revenue forecast for the full-year 2014.

"We began the year with solid performance that developed as we expected. In particular and as projected, our non-recurring business showed stability and delivered positive results" President and CEO Scott Key said in a statement.

The Englewood, Colorado-based company reported net income of $32.42 million or $0.47 per share for the first quarter, higher than $24.67 million or $0.37 per share in the prior-year quarter.

Excluding items, adjusted earnings for the quarter was $87.93 million or $1.28 per share, compared to $72.05 million or $1.08 per share in the year-ago quarter.

On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $1.25 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenue for the quarter grew 37 percent or 5 percent organically, to $524.46 million from $382.53 million in the same quarter last year, and topped thirteen Wall Street analysts' consensus estimate of $514.05 million.

Subscription revenue for the quarter grew 36 percent or 5 percent organically, to $417 million, and non-subscription revenue increased 43 percent or 3 percent organically, to $107 million from last year.

Americas revenue surged 53 percent or 5 percent organically, to $350 million, revenue for EMEA grew 16 percent or 5 percent organically, to $127 million, and APAC revenues increased 7 percent to $47 million from a year ago.

Looking ahead to fiscal 2014, IHS continues to expect adjusted earnings in a range of $5.50 to $5.85 per share, on projected revenues between $2.17 billion and $2.23 billion. Street is currently looking for full-year 2014 earnings of $5.77 per share on annual revenues of $2.22 billion.

"We continue to be pleased with the robust free cash flow generation of our business model, as it provides us with great operational and capital structure flexibility as we rapidly de-lever," CFO Todd Hyatt stated.

IHS closed Wednesday's regular trading session at $120.77, down $0.44 on a volume of 0.18 million shares.