IHS Q4 Profit Declines, But Revenues Up 35%

(RTTNews) - Business information provider IHS Inc. (IHS) Tuesday reported a 12 percent decline in fourth-quarter profit, reflecting higher operating expenses. Quarterly revenues climbed 35 percent and topped analysts' expectations helped by revenue growth in all of its segments.

Scott Key, president and chief executive officer of the company said, "...We saw improving pipelines as we entered the quarter and were further helped by the realization of some deals that had slipped out of third quarter and by very strong performance at Polk."

Net income for the quarter declined to $40.81 million or $0.60 per share from $46.42 million or $0.69 per share in the previous year. On an adjusted basis, earnings per share grew to $1.46 from $1.42 per share reported last year.

On average, 14 analysts polled by Thomson Reuters expected the company to earn $1.27 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter climbed 35 percent $559.68 million from $414.36 million in the prior year quarter, and exceeded analysts' estimate of $534.84 million.

Subscription revenue grew 38 percent to $418.31 million. The company said its subscription-based business showed an organic growth rate of 7 percent. Non-subscription revenues were up 26 percent from a year earlier.

Revenues from the Americas segment increased 52 percent, EMEA revenues were up 14 percent, and APAC region had a revenue growth of 6 percent.

Meanwhile, total operating expenses increased to $498.88 million from $358.88 million in the same quarter last year.

For the fiscal year ended November 30, 2013, the company posted net income of $131.73 million or $1.95 per share, down from $158.17 million or $2.37 per share in the prior year. Annual revenues increased 20 percent to $1.84 billion from $1.53 billion in the preceding year.

Looking ahead to the fiscal year ending November 30, 2014, the company expects adjusted earnings to be in a range of $5.50 to $5.85 per share. Revenues for the fiscal are expected to be between $2.17 billion and $2.23 billion, including 6 to 7 percent organic growth on the subscription base.

Wall Street is currently looking for earnings of $5.58 per share, on revenues of $2.20 billion for fiscal 2014.

IHS closed Monday's regular trading at $116.02, down 0.46 percent.