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IHS Markit (INFO) to Post Q3 Earnings: What's in the Offing?

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IHS Markit Ltd. (INFO - Free Report) is scheduled to report third-quarter fiscal 2020 results on Sep 29, before the bell.

The company has an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate in each of the trailing four quarters with an average beat of 6%.

Expectations This Time Around

The Zacks Consensus Estimate for revenues for the to-be-reported quarter is pegged at $1.07 billion, indicating year-over-year decline of 3.8%. Revenues are expected to have been negatively impacted by the coronavirus-led economic sluggishness, which slowed down new business and impacted dealer-facing products in Transportation and Upstream products in Resources businesses. In second-quarter fiscal 2020, revenues of $1.03 billion decreased 10% year over year.

The consensus estimate for IHS Markit’s earnings is pegged at 69 cents, indicating year-over-year increase of 3%. Stringent cost-management measures are expected to have protected the bottom line against the expected revenue decline. In second-quarter fiscal 2020, adjusted earnings of 69 cents per share declined 3% year over year.

IHS Markit Ltd. Price and EPS Surprise

IHS Markit Ltd. Price and EPS Surprise

What Our Model Says

Our proven Zacks model does not conclusively predict an earnings beat for IHS Markit this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

IHS Markit has an Earnings ESP of -1.45% and Zacks Rank #3.

Stocks to Consider

Here are a few stocks that investors can consider, as our model shows that these have the right combination of elements to beat on earnings this season.

ExlService Holdings, Inc. (EXLS - Free Report) has an Earnings ESP of +10.90% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

S&P Global (SPGI - Free Report) has an Earnings ESP of +4.80% and a Zacks Rank #2.

TransUnion (TRU - Free Report) has an Earnings ESP of +4.75% and a Zacks Rank of 2.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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