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IHS Markit Ltd. (INFO - Free Report) reported impressive second-quarter fiscal 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
Adjusted earnings (excluding 41 cents from non-recurring items) per share of 81 cents beat the consensus mark by 1.3% and increased 17.4% on a year-over-year basis. Total revenues came in at $1.2 billion, surpassing the consensus mark by 3.8% and increasing 15% from the year-ago quarter’s levels on a reported basis and 13% organically.
We observe that shares of IHS Markit have gained 55.7% in the past year compared with 8.3% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Quarterly Details
Financial services segment’s revenues increased 11% year over year on a reported basis and 9% on an organic basis, to $493.4 million. Revenues in the Resources segment totaled $220.8 million, up 1% year over year on a reported basis.
The Transportation segment witnessed year-over-year revenue growth of 41% on a reported basis to reach $344.1 million. Revenues increased 39% organically. Revenues in the Consolidated Markets & Solutions segment amounted to $123.1 million, up 2% year over year on a reported basis and 1% organically.
Recurring fixed revenues of $836 million were up 11% year over year on a reported basis and 9% organically. Recurring variable revenues of $182.6 million increased 16% year over year on a reported and 11% on an organic basis. Non-recurring revenues totaled $162.8 million, up 44% year over year on a reported and 41% on an organic basis.
Adjusted EBITDA of $517.4 million was up 14% from the year-ago quarter’s figure. Adjusted EBITDA margin deteriorated 40 basis points (bps) year over year to 43.8%.
IHS Markit ended the quarter with cash and cash equivalent balance of $217.4 million compared with $172 million in the prior quarter. Long-term debt was $4.6 billion, flat with the previous quarter’s figure.
Cash flow from operations and free cash flow amounted to $372 million and $301.4 million, respectively, in the quarter. CapEx was $71.2 million. The company paid out $79.7 million in dividends in the quarter.
The long-term expected earnings per share (three to five years) growth rate for ExlService, Gartner and CRA International is pegged at 10.8%, 13.5% and 15.5%, respectively.
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IHS Markit's (INFO) Q2 Earnings Beat Estimates, Increase Y/Y
IHS Markit Ltd. (INFO - Free Report) reported impressive second-quarter fiscal 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
Adjusted earnings (excluding 41 cents from non-recurring items) per share of 81 cents beat the consensus mark by 1.3% and increased 17.4% on a year-over-year basis. Total revenues came in at $1.2 billion, surpassing the consensus mark by 3.8% and increasing 15% from the year-ago quarter’s levels on a reported basis and 13% organically.
We observe that shares of IHS Markit have gained 55.7% in the past year compared with 8.3% rise of the industry it belongs to.
Quarterly Details
Financial services segment’s revenues increased 11% year over year on a reported basis and 9% on an organic basis, to $493.4 million. Revenues in the Resources segment totaled $220.8 million, up 1% year over year on a reported basis.
The Transportation segment witnessed year-over-year revenue growth of 41% on a reported basis to reach $344.1 million. Revenues increased 39% organically. Revenues in the Consolidated Markets & Solutions segment amounted to $123.1 million, up 2% year over year on a reported basis and 1% organically.
Recurring fixed revenues of $836 million were up 11% year over year on a reported basis and 9% organically. Recurring variable revenues of $182.6 million increased 16% year over year on a reported and 11% on an organic basis. Non-recurring revenues totaled $162.8 million, up 44% year over year on a reported and 41% on an organic basis.
Adjusted EBITDA of $517.4 million was up 14% from the year-ago quarter’s figure. Adjusted EBITDA margin deteriorated 40 basis points (bps) year over year to 43.8%.
IHS Markit ended the quarter with cash and cash equivalent balance of $217.4 million compared with $172 million in the prior quarter. Long-term debt was $4.6 billion, flat with the previous quarter’s figure.
Cash flow from operations and free cash flow amounted to $372 million and $301.4 million, respectively, in the quarter. CapEx was $71.2 million. The company paid out $79.7 million in dividends in the quarter.
IHS Markit Ltd. Price, Consensus and EPS Surprise
IHS Markit Ltd. price-consensus-eps-surprise-chart | IHS Markit Ltd. Quote
Zacks Rank and Stocks to Consider
IHS Markit currently carries a Zacks Rank #3 (Hold).
Some better-ranked service stocks are ExlService (EXLS - Free Report) , Gartner, Inc. (IT - Free Report) and CRA International, Inc. (CRAI - Free Report) . ExlService and CRA International carry a Zacks Rank #2 (Buy), while Gartner sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term expected earnings per share (three to five years) growth rate for ExlService, Gartner and CRA International is pegged at 10.8%, 13.5% and 15.5%, respectively.
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The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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