The 10-second takeaway
For the quarter ended Nov. 30 (Q4), IHS beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and earnings per share dropped significantly.
Gross margins expanded, operating margins contracted, net margins dropped.
IHS booked revenue of $371 million. The nine analysts polled by S&P Capital IQ expected to see a top line of $365 million. Sales were 25% higher than the prior-year quarter's $296 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.99. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.92 per share on the same basis. GAAP EPS of $0.35 for Q4 were 45% lower than the prior-year quarter's $0.63 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 60.4%, 220 basis points better than the prior-year quarter. Operating margin was 7.2%, 1,160 basis points worse than the prior-year quarter. Net margin was 6.1%, 790 basis points worse than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $354 million.
Next year's average estimate for revenue is $1.5 billion. The average EPS estimate is $3.97.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 76 members out of 86 rating the stock outperform, and 10 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give IHS a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on IHS is outperform, with an average price target of $91.20.
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