IHS Q3 Profit Surges, Tops View; Lifts Full-year Outlook

(RTTNews) - Business information provider IHS, Inc. (IHS) Thursday reported a sharp increase in third-quarter profit, as revenues climbed 16 percent with growth in Subscription revenue. Total organic revenue growth was 3 percent. Adjusted earnings topped analysts' expectations, while revenues missed view.

The company raised the lower end of its adjusted earnings per share outlook range for fiscal 2014, while slightly lowered the upper end. The firm lifted its revenue guidance for the full year.

For the third quarter ended August 31, 2014, the company posted net income of $46.52 million or $0.68 per share, significantly up from $23.36 million or $0.35 per share in the prior-year quarter.

On an adjusted basis, earnings for the recent quarter were $1.49 per share, while the firm posted $1.27 per share in the previous year.

On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $1.44 per share for the quarter. Analysts' estimates typically exclude one-time items.

The Englewood, Colorado-based firm said its revenues for the quarter grew 16 percent to $556.01 million from $480.29 million in the same quarter last year. Thirteen analysts projected third-quarter revenues of $556.66 million.

Subscription revenue climbed 18 percent to $432.13 million. Non-subscription revenue was $123.88 million, up 7 percent from last year, while it decreased 5 percent organically.

Total organic revenue growth was 3 percent, aided by 6 percent subscription organic revenue growth. Total organic revenue growth was 5 percent as normalized.

In the Americas, revenue increased 18 percent to $363 million, and included 5 percent organic growth for the subscription-based business. Third-quarter revenue for EMEA grew 13 percent to $138 million, and revenues from APAC were $54 million, up 7 percent from the preceding year.

Scott Key, president and chief executive officer of the company said, "The disciplined execution of our strategy is resulting in a consistent delivery of organic revenue growth, profit growth and margin expansion as we are also building new growth in our sales and product pipelines."

For the fiscal year ending November 30, 2014, IHS now expects adjusted earnings to be in the range of $5.70 to $5.80 per share. Revenues are expected to be $2.225 billion to $2.235 billion, including 6 percent organic growth on the subscription base.

Analysts project annual earnings per share of $5.80, on $2.24 billion revenues.

Earlier, the company forecast adjusted earnings of $5.50 to $5.85 per share and revenue of $2.17 billion to $2.23 billion, including 6 to 7 percent organic growth on the subscription base.

IHS closed Wednesday's regular trading at $138.62 on the NYSE.