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IHS Markit's (INFO) Q4 Earnings Beat Estimates, Increase Y/Y

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IHS Markit Ltd. reported impressive fourth-quarter fiscal 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.

Adjusted earnings per share (excluding 98 cents from non-recurring items) of 85 cents beat the consensus mark by 1.2% and increased 18.1% on a year-over-year basis. Total revenues came in at $1.18 billion, surpassing the consensus mark by 3.2% and increasing 6.2% from the year-ago quarter’s levels on a reported basis and 10% organically.

Shares of IHS Markit have gained 33.9% in the past year compared with 3.8% growth of the industry it belongs to.

Zacks Investment ResearchImage Source: Zacks Investment Research

Quarterly Details

Financial services segment’s revenues increased 3% year over year on a reported basis and 12% on an organic basis to $473 million. Revenues in the Resources segment totaled $215 million, up 2% year over year on a reported basis and 2% organically.

IHS Markit Ltd. Price, Consensus and EPS Surprise

 

IHS Markit Ltd. Price, Consensus and EPS Surprise

IHS Markit Ltd. price-consensus-eps-surprise-chart | IHS Markit Ltd. Quote

 

The Transportation segment witnessed year-over-year revenue growth of 12% on a reported basis, amounting to $351 million. Revenues increased 12% organically.

Revenues in the Consolidated Markets & Solutions segment amounted to $137 million, up 9% year over year on a reported basis and 10% organically.
Recurring fixed revenues of $874.1 million were up 8% year over year on a reported basis and 8% organically. Recurring variable revenues of $144.4 million fell 9% year over year on a reported basis but rose 11% on an organic basis. Non-recurring revenues totaled $157.8 million, up 14% year over year on a reported basis and 15% organically.

Adjusted EBITDA of $530.5 million was up 14% from the year-ago quarter’s levels. Adjusted EBITDA margin surged 310 basis points (bps) year over year to 45.1%.

IHS Markit ended the quarter with a cash and cash equivalent balance of $293.1 million compared with $338 million in the prior quarter. The long-term debt was $3.9 billion compared with $4.6 billion in the previous quarter.

Cash flow from operations and free cash flow amounted to $449 million and $374.7 million, respectively, in the quarter. CapEx was $74.3 million. The company paid out $79.8 million in dividends in the quarter.

Zacks Rank and Stocks to Consider

IHS Markit currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Business Services sector are WEX Inc. (WEX - Free Report) , Cross Country Healthcare, Inc. (CCRN - Free Report) and Genpact Limited (G - Free Report) .

WEX has an expected revenue growth rate of around 17.8% for full year 2021. WEX has a trailing four-quarter earnings surprise of 8.6%, on average.

WEX’s shares have surged 12.6% in the past month. It has a long-term earnings growth of 28%. WEX carries a Zacks #2 (Buy) Rank.

Cross Country Healthcare has an expected revenue growth rate of around 94.3% for the full year 2021. CCRN has a trailing four-quarter earnings surprise of 75%, on average.

Cross Country Healthcare’s shares have surged 98.1% in the past year. It has a long-term earnings growth of 21.5%. CCRN sports a Zacks #1 Rank.

Genpact has an expected revenue growth rate of around 7.6% for the full year 2021. It has a trailing four-quarter earnings surprise of 15.1%, on average.

Genpact’s shares have surged 28.8% in the past year. It has a long-term earnings growth of 14.8%. G carries a Zacks #2 Rank.
 


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