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IHS Markit (INFO) to Post Q2 Earnings: What's in the Offing?

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IHS Markit Ltd. (INFO - Free Report) is scheduled to release second-quarter fiscal 2021 results on Jun 23, before the bell.

The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all of the last four quarters, delivering a surprise of 6.7%, on average.

Expectations This Time Around

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $1.14 billion, indicating year-over-year growth of 10.9%. The top line is likely to have gained from strong performance of Financial Services and Transportation segments.

The Financial Services segment’s revenues are expected to have benefited from organic growth, driven by growth in demand for the company’s pricing, reference data and valuation offerings, strong performance of SFTR reporting platform and indices offerings, higher capital market issuance, better adoption of corporate actions, private markets, and regulatory and compliance offerings, and higher loan settlement activities.

In the transportation segment, dealer-facing part of IHS Markit’s automotive offerings is likely to have experienced robust growth across CARFAX and automotiveMastermind in the quarter. Demand for products supporting OEMs, banking and insurance clients, and parts manufacturers, is also expected to have increased significantly.

The consensus mark for earnings per share in the to-be-reported quarter is pegged at 80 cents, indicating year-over-year growth of 15.9%. Margin expansion from revenue growth is likely to have boosted the bottom line.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for IHS Markit this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

IHS Markit has an Earnings ESP of 0.00% and a Zacks Rank #3.

IHS Markit Ltd. Price and EPS Surprise

IHS Markit Ltd. Price and EPS Surprise

IHS Markit Ltd. price-eps-surprise | IHS Markit Ltd. Quote

Stocks to Watch

Here are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on second-quarter 2021 earnings:

S&P Global (SPGI - Free Report) , with an Earnings ESP of +2.16% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Spotify (SPOT - Free Report) , with an Earnings ESP of +1.00% and a Zacks Rank of 3.

Montrose Environmental Group (MEG - Free Report) , with an Earnings ESP of +76.47% and a Zacks Rank of 3.

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