IHS
The 10-second takeaway
For the quarter ended May 31 (Q2), IHS met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.
Gross margins expanded, operating margins shrank, net margins dropped.
Revenue details
IHS reported revenue of $387.2 million. The nine analysts polled by S&P Capital IQ anticipated revenue of $383.8 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $323.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.97. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.94 per share. GAAP EPS of $0.66 for Q2 were 8.2% higher than the prior-year quarter's $0.61 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 57.3%, 100 basis points better than the prior-year quarter. Operating margin was 16.7%, 20 basis points worse than the prior-year quarter. Net margin was 11.4%, 100 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $400.9 million. On the bottom line, the average EPS estimate is $1.02.
Next year's average estimate for revenue is $1.56 billion. The average EPS estimate is $3.98.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 81 members out of 92 rating the stock outperform, and 11 members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give IHS a green thumbs-up, and four 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 $99.73.
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