The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict McGraw-Hill Companies's revenues will grow 5.9% and EPS will increase 14.3%.
The average estimate for revenue is $1.61 billion. On the bottom line, the average EPS estimate is $0.72.
Last quarter, McGraw-Hill Companies notched revenue of $1.95 billion. GAAP reported sales were 2.4% higher than the prior-year quarter's $1.91 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $1.33. GAAP EPS of $1.10 for Q3 were 9.1% lower than the prior-year quarter's $1.21 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 65.2%, 250 basis points better than the prior-year quarter. Operating margin was 32.1%, 30 basis points better than the prior-year quarter. Net margin was 16.1%, 310 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $6.45 billion. The average EPS estimate is $3.45.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 481 members out of 529 rating the stock outperform, and 48 members rating it underperform. Among 225 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 203 give McGraw-Hill Companies a green thumbs-up, and 22 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on McGraw-Hill Companies is outperform, with an average price target of $56.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of The McGraw-Hill Companies. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.