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IHS Markit Ltd. reported impressive first-quarter fiscal 2021 results, with both earnings and revenues beating the Zacks Consensus Estimate.
Adjusted earnings per share of 71 cents beat the consensus mark by 1.4% and increased 7.6% on a year-over-year basis. Total revenues came in at $1.12 billion, surpassing the consensus mark by 1% and increasing 3.6% from the year-ago quarter on a reported basis and 3% organically.
We observe that shares of IHS Markit have gained 62.3% over the past year, significantly outperforming the 28.9% rally of the industry it belongs to.
Quarterly Details
Financial services segment’s revenues increased 11% year over year on a reported basis, and 10% on an organic basis, to $485 million. Revenues at the Resources segment totaled $203 million, down 10% year over year on a reported basis as well as organically.
The Transportation segment witnessed year-over-year revenue growth of 5% on a reported basis to reach $312 million. Revenues increased 4% organically. Revenues at the Consolidated Markets & Solutions segment amounted to $121 million, down 1% year over year on a reported basis as well as organically.
Recurring fixed revenues of $825.6 million were up 3% year over year on a reported basis and 2% organically. Recurring variable revenues of $172.9 million grew 18% year over year on a reported and 17% on an organic basis. Non-recurring revenues totaled $121.4 million, down 7% year over year on a reported as well as an organic basis.
Adjusted EBITDA of $466.8 million was up 8% from the year-ago quarter. Adjusted EBITDA margin improved 180 basis points (bps) year over year to 41.7%.
IHS Markit ended the quarter with cash and cash equivalent balance of $172 million, compared with $125.6 million in the prior quarter. Long-term debt was $4.6 billion, flat with the previous quarter’s figure.
Cash flow from operations and free cash flow amounted to $244.5 million and $171.9 million, respectively, in the quarter. CapEx was $72.6 million. The company paid out $79.3 million in dividends in the quarter.
Zacks Rank and Stocks to Consider
IHS Markit currently carries a Zacks Rank #3 (Hold).
The long-term expected earnings per share (three to five years) growth rate for ExlService, Gartner and Blucora is pegged at 9.4%, 13.5% and 15%, respectively.
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Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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IHS Markit's (INFO) Q1 Earnings Beat Estimates, Increase Y/Y
IHS Markit Ltd. reported impressive first-quarter fiscal 2021 results, with both earnings and revenues beating the Zacks Consensus Estimate.
Adjusted earnings per share of 71 cents beat the consensus mark by 1.4% and increased 7.6% on a year-over-year basis. Total revenues came in at $1.12 billion, surpassing the consensus mark by 1% and increasing 3.6% from the year-ago quarter on a reported basis and 3% organically.
We observe that shares of IHS Markit have gained 62.3% over the past year, significantly outperforming the 28.9% rally of the industry it belongs to.
Quarterly Details
Financial services segment’s revenues increased 11% year over year on a reported basis, and 10% on an organic basis, to $485 million. Revenues at the Resources segment totaled $203 million, down 10% year over year on a reported basis as well as organically.
The Transportation segment witnessed year-over-year revenue growth of 5% on a reported basis to reach $312 million. Revenues increased 4% organically. Revenues at the Consolidated Markets & Solutions segment amounted to $121 million, down 1% year over year on a reported basis as well as organically.
Recurring fixed revenues of $825.6 million were up 3% year over year on a reported basis and 2% organically. Recurring variable revenues of $172.9 million grew 18% year over year on a reported and 17% on an organic basis. Non-recurring revenues totaled $121.4 million, down 7% year over year on a reported as well as an organic basis.
Adjusted EBITDA of $466.8 million was up 8% from the year-ago quarter. Adjusted EBITDA margin improved 180 basis points (bps) year over year to 41.7%.
IHS Markit ended the quarter with cash and cash equivalent balance of $172 million, compared with $125.6 million in the prior quarter. Long-term debt was $4.6 billion, flat with the previous quarter’s figure.
Cash flow from operations and free cash flow amounted to $244.5 million and $171.9 million, respectively, in the quarter. CapEx was $72.6 million. The company paid out $79.3 million in dividends in the quarter.
Zacks Rank and Stocks to Consider
IHS Markit currently carries a Zacks Rank #3 (Hold).
Some better-ranked service stocks are ExlService ((EXLS - Free Report) , Gartner, Inc. (IT - Free Report) ) and Blucora (, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term expected earnings per share (three to five years) growth rate for ExlService, Gartner and Blucora is pegged at 9.4%, 13.5% and 15%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>