Earnings Review and Free Research Report: IHS Markit Adjusted Diluted EPS Increased 26.6%

LONDON, UK / ACCESSWIRE / October 6, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on IHS Markit Ltd (NASDAQ: INFO), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=INFO, following the Company’s announcement of its financial results on September 26, 2017, for the third quarter fiscal 2017. The Company’s revenue increased 24.8% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Earnings Reviewed

For three months ended August 31, 2017, IHS Markit’s revenue increased 24.8% to $904.7 million from $724.6 million in Q3 FY16. During Q3 FY17, the Company’s organic revenue growth was 5% including BPVC engineering standard and 4% excluding BPVC. Revenue surpassed analysts’ expectations of $891.7 million.

During Q3 FY17, the Company’s earnings before interest, tax, depreciation, and amortization (EBITDA) increased 270.7% to $271.0 million from $73.1 million in Q3 FY16. For the reported quarter, the Company’s EBITDA margin increased 1,990 basis points to 29.9% of revenue from 10% of revenue in Q3 FY16. During Q3 FY17, IHS Markit’s adjusted EBITDA increased 30.4% to $350.8 million from $269.0 million in Q3 FY16. For the reported quarter, the Company’s adjusted EBITDA margin increased 170 basis points to 38.8% of revenue from 37.1% of revenue in Q3 FY16.

During Q3 FY17, IHS Markit’s selling, general, and administrative (SG&A) expenses increased 0.4% to $268.8 million from $267.6 million in Q3 FY16. For the reported quarter, the Company’s depreciation and amortization (D&A) expenses increased 31.7% to $120.8 million from $91.7 million in Q3 FY16. For the reported quarter, the Company’s total operating expenses increased 1.4% to $752.2 million from $741.3 million in Q3 FY16.

During Q3 FY17, IHS Markit’s operating income was $152.5 million compared to operating loss of $16.7 million in Q3 FY16.

During Q3 FY17, IHS Markit’s net income was $145.9 million compared to net loss of $31.7 million in Q3 FY16. For the reported quarter, the Company’s adjusted net income increased 49.3% to $236.9 million on a y-o-y basis from $158.6 million in Q3 FY16. During Q3 FY17, IHS Markit’s diluted EPS was $0.35 compared to negative diluted EPS of $0.09 in Q3 FY16. For the reported quarter, the Company’s adjusted diluted EPS increased 26.6% to $0.57 on a y-o-y basis from $0.45 in Q3 FY16. Adjusted diluted EPS surpassed analysts’ expectations of $0.53.

IHS Markit’s Segment Details

Resources – During Q3 FY17, Resources segment’s revenue decreased 4% to $202.2 million from $210.4 million in the same period last year. For the reported quarter, the segment’s adjusted EBITDA margin decreased 110 basis points to 43.8% of revenue from 44.9% of revenue in Q3 FY16.

Transportation – During Q3 FY17, the Transportation segment’s revenue increased 13% to $257.1 million from $227.1 million in the same period last year. For the reported quarter, the segment’s adjusted EBITDA margin increased 380 basis points to 42.8% of revenue from 39% of revenue in Q3 FY16.

CMS – During Q3 FY17, the CMS segment’s revenue increased 7% to $138.8 million from $130.2 million in the same period last year. For the reported quarter, the segment’s adjusted EBITDA margin decreased 250 basis points to 23.1% of revenue from 25.6% of revenue in Q3 FY16.

Financial Services – During Q3 FY17, the Financial Services segment’s revenue was $306.6 million compared to $156.9 million in the same period last year. For the reported quarter, the segment’s adjusted EBITDA margin increased 360 basis points to 45.0% of revenue from 41.4% of revenue in Q3 FY16.

Balance Sheet

As on August 31, 2017, IHS Markit’s cash and cash equivalents increased 10.7% to $153.8 million from $138.9 million in Q4 FY16.

During Q3 FY17, the Company’s net accounts receivable increased 3.1% to $655.5 million from $635.6 million in Q4 FY16.

For the reported quarter, the Company’s accounts payable decreased 15.2% to $49.9 million from $58.9 million in Q4 FY16.

During Q3 FY17, IHS Markit’s long-term debt increased 4.2% to $3.42 billion, from $3.28 billion in Q4 FY16.

During FY17, the Company’s YTD cash provided by operating activities was $718.6 million compared to $475.1 million in the same period last year.

During Q3 FY17, IHS Markit’s free cash flow increased 106% to $206.0 million from $100.0 million in Q3 FY16.

Outlook

For FY17, IHS Markit expects revenue to be in the range of $3.49 billion to $3.56 billion, including organic growth of 3% to 4%. The Company expects adjusted EBITDA to be in the range of $1.38 billion to $1.40 billion for fiscal 2017.

The Company estimates adjusted diluted EPS to be in the range of $2.02 to $2.08 for fiscal 2017.

Stock Performance

IHS Markit’s share price finished yesterday’s trading session at $44.09, marginally down 0.54%. A total volume of 1.90 million shares have exchanged hands. The Company’s stock price surged 4.48% in the past six months, and 19.97% in the previous twelve months. Additionally, the stock rallied 24.51% since the start of the year. Shares of the Company have a PE ratio of 46.36 and currently have a market cap of $17.61 billion.

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