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IHS Markit Ltd. reported strong third-quarter fiscal 2020 results, with earnings and revenues beating the Zacks Consensus Estimate.
Adjusted earnings per share of 77 cents beat the consensus mark by 11.6% and increased 15% on a year-over-year basis. Total revenues came in at $1.07 billion, marginally surpassing the consensus mark but declining 4% from the year-ago quarter on a reported basis. Revenues declined 1% organically.
We observe that shares of IHS Markit have gained 19.7% over the past year, outperforming the 1.5% rally of the industry it belongs to.
Quarterly Details
Financial services segment’s revenues increased 4% year over year on a reported as well as organic basis to $446 million. Revenues at the Resources segment totaled $208 million, down 9% year over year on a reported basis as well as organically.
The Transportation segment witnessed year-over-year revenue decline of 5% on a reported basis to reach $243 million. Revenues were flat organically. Revenues at the Consolidated Markets & Solutions segment amounted to $121 million, down 13% year over year on a reported basis and 5% organically.
Recurring fixed revenues of $796.2 million were marginally down year over year on a reported basis and 2% on an organic basis. Recurring variable revenues of $153 million grew 6% year over year on a reported as well as organic basis. Non-recurring revenues totaled $124 million, down 26% year over year on a reported basis and 22% on an organic basis.
Adjusted EBITDA of $486.2 million was up 7% from the year-ago quarter. Adjusted EBITDA margin improved 460 basis points (bps) year over year to 45.3%.
IHS Markit ended the quarter with cash and cash equivalent balance of $156.8 million, compared with $207.8 million in the prior quarter. Long-term debt was $4.7 billion compared with $5.1 billion in the previous quarter.
Cash flow from operations and free cash flow amounted to $402.8 million and $338.6 million, respectively, in the quarter. CapEx was $64.2 million. The company paid out $67.7 million in dividends in the quarter.
Investors interested in the broader Zacks Business Services sector are keenly awaiting third-quarter 2020 earnings reports of key players like Waste Connections (WCN - Free Report) , Waste Management (WM - Free Report) and Republic Services (RSG - Free Report) . While Waste Connections will release earnings on Oct 28, Waste Management and Republic Services will report the same on Nov 2 and Nov 5, respectively.
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IHS Markit's (INFO) Q3 Earnings Beat Estimates, Increase Y/Y
IHS Markit Ltd. reported strong third-quarter fiscal 2020 results, with earnings and revenues beating the Zacks Consensus Estimate.
Adjusted earnings per share of 77 cents beat the consensus mark by 11.6% and increased 15% on a year-over-year basis. Total revenues came in at $1.07 billion, marginally surpassing the consensus mark but declining 4% from the year-ago quarter on a reported basis. Revenues declined 1% organically.
We observe that shares of IHS Markit have gained 19.7% over the past year, outperforming the 1.5% rally of the industry it belongs to.
Quarterly Details
Financial services segment’s revenues increased 4% year over year on a reported as well as organic basis to $446 million. Revenues at the Resources segment totaled $208 million, down 9% year over year on a reported basis as well as organically.
The Transportation segment witnessed year-over-year revenue decline of 5% on a reported basis to reach $243 million. Revenues were flat organically. Revenues at the Consolidated Markets & Solutions segment amounted to $121 million, down 13% year over year on a reported basis and 5% organically.
Recurring fixed revenues of $796.2 million were marginally down year over year on a reported basis and 2% on an organic basis. Recurring variable revenues of $153 million grew 6% year over year on a reported as well as organic basis. Non-recurring revenues totaled $124 million, down 26% year over year on a reported basis and 22% on an organic basis.
Adjusted EBITDA of $486.2 million was up 7% from the year-ago quarter. Adjusted EBITDA margin improved 460 basis points (bps) year over year to 45.3%.
IHS Markit Ltd. Price, Consensus and EPS Surprise
IHS Markit Ltd. price-consensus-eps-surprise-chart | IHS Markit Ltd. Quote
IHS Markit ended the quarter with cash and cash equivalent balance of $156.8 million, compared with $207.8 million in the prior quarter. Long-term debt was $4.7 billion compared with $5.1 billion in the previous quarter.
Cash flow from operations and free cash flow amounted to $402.8 million and $338.6 million, respectively, in the quarter. CapEx was $64.2 million. The company paid out $67.7 million in dividends in the quarter.
Currently, IHS Markit has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Investors interested in the broader Zacks Business Services sector are keenly awaiting third-quarter 2020 earnings reports of key players like Waste Connections (WCN - Free Report) , Waste Management (WM - Free Report) and Republic Services (RSG - Free Report) . While Waste Connections will release earnings on Oct 28, Waste Management and Republic Services will report the same on Nov 2 and Nov 5, respectively.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>