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IHS Markit's (INFO) Q4 Earnings Beat Estimates, Increase Y/Y

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IHS Markit Ltd. (INFO - Free Report) reported mixed fourth-quarter fiscal 2020 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

Adjusted earnings per share of 72 cents beat the consensus mark by 7.5% and increased 11% on a year-over-year basis. Total revenues came in at $1.11 billion, marginally missing the consensus mark and declining 1% from the year-ago quarter on a reported basis. Revenues were flat organically.

We observe that shares of IHS Markit have gained 9.7% over the past year against 3.8% decline of the industry it belongs to.

Quarterly Details

Financial services segment’s revenues increased 7% year over year on a reported basis and 6% on an organic basis to $449 million. Revenues at the Resources segment totaled $210 million, down 1% year over year on a reported basis as well as organically.

The Transportation segment witnessed year-over-year revenue decline of 4% on a reported basis to reach $312 million. Revenues increased 2% organically. Revenues at the Consolidated Markets & Solutions segment amounted to $126 million, down 2% year over year on a reported basis. Revenues were flat organically.

Recurring fixed revenues of $809.7 million were down 1% year over year organically. Recurring variable revenues of $158.5 million grew 7% year over year on a reported as well as organic basis. Non-recurring revenues totaled $139 million, down 15% year over year on a reported basis and 11% on an organic basis.

Adjusted EBITDA of $464.9 million was up 3% from the year-ago quarter. Adjusted EBITDA margin improved 160 basis points (bps) year over year to 42%.

IHS Markit Ltd. Price, Consensus and EPS Surprise

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 $125.6 million, compared with $156.8 million in the prior quarter. Long-term debt was $4.6 billion compared with $4.7 billion in the previous quarter.

Cash flow from operations and free cash flow amounted to $338.3 million and $275.3 million, respectively, in the quarter. CapEx was $63 million. The company paid out $67.4 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 stocks here.

Upcoming Releases

Investors interested in the broader Zacks Business Services sector are keenly awaiting fourth-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 Feb 17, Waste Management and Republic Services will report the same on Feb 18 and Feb 22, respectively.

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