Back to top

Analyst Blog

McGraw Hill Financial, Inc. (MHFI - Analyst Report) stated that it has completed the sale of Aviation Week to Penton. However, financial terms of the deal were not disclosed.

The move is strategic fit for McGraw Hill Financial as the company is restructuring its portfolio of businesses to concentrate more on high growth operations, thereby enhancing shareholder value through proper capital allocation.

McGraw Hill Financial now primarily focuses on capital and commodities markets. It reclassified its Education segment as discontinued operations, which was divested to Apollo Global Management LLC (APO - Snapshot Report) for $2.4 billion in cash. The company also seeks to increase its ownership in CRISIL to 75% from the existing 53%.

Moreover, McGraw-Hill Financial has made several strategic investments in its core businesses to drive growth. The formation of S&P Dow Jones Indices coupled with S&P Capital IQ’s acquisitions of Credit Market Analysis Limited, QuantHouse, R2 Financial Technologies and position it well against other industry majors like privately held Fitch, Moody’s Corp. (MCO - Analyst Report) and Dun & Bradstreet (DNB - Analyst Report).

We believe the company’s strategic initiatives and investments in core businesses would lead to higher profits in the long run.

Recently, the company came up with strong Q2 results. McGraw-Hill Financial posted second-quarter 2013 adjusted earnings of 92 cents a share, which jumped 31% from the year-ago quarter and comfortably surpassed the Zacks Consensus Estimate of 81 cents.

Top line escalated 17% year over year to $1,250 million and surpassed the Zacks Consensus Estimate of $1,207 million.

McGraw-Hill Financial raised its 2013 earnings guidance range. The company now expects earnings in the range of $3.15 – $3.25 per share. Currently, McGraw Hill Financial holds a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%