Back to top

Image: Bigstock

IHS Markit (INFO) to Post Q4 Earnings: What's in the Offing?

Read MoreHide Full Article

IHS Markit Ltd. (INFO - Free Report) is scheduled to release fourth-quarter fiscal 2019 results on Jan 14, before the bell.

Shares of the company have gained 55.6% over the past year, outperforming the industry’s growth of 43.5%.

Factors at Play

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $1.12 billion, indicating year-over-year growth of 4.9%. The top line is likely to have gained from Resources, Transportation and Financial Services segments.

The consensus estimate for the Resources segment stands at $242 million, indicating year-over-year growth of 8.5%. Strong performance across downstream pricing, Opus and chemical businesses is likely to have driven this growth.

The consensus mark for the Transportation segment stands at $315 million, indicating year-over-year improvement of 6.1%. Strong performance across CARFAX’s used car listing and vehicle history report product offerings, automotive powertrain and compliance product offerings, and increase in automotiveMastermind revenues from additional automotive brands and ongoing product enhancements are expected to have boosted the segment’s growth.

The Financial Services segment revenues are expected to have grown 6.8% year over year on the back of strength in information and solutions product offerings, and strong performance of Ipreo.

In third-quarter fiscal 2019, IHS Markit’s total revenues of $1.11 billion increased 11% on a year-over-year basis.

The consensus mark for earnings per share in the to-be-reported quarter is pegged at 61 cents, indicating year-over-year growth of 7%. Margin expansion from revenue growth, continued integration and business leveraging efforts are likely to have boosted the bottom line.

In third-quarter fiscal 2019, adjusted earnings per share of 67 cents increased 16% year over year.

Zacks Rank & Stocks to Consider

Currently, IHS Markit carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Business Services sector are S&P Global (SPGI - Free Report) , Accenture (ACN - Free Report) and Booz Allen Hamilton (BAH - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term expected EPS (three to five years) growth rate for S&P Global, Accenture and Booz Allen Hamilton is 10%, 10.3% and 13%, respectively.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q3 2019, while the S&P 500 gained +39.6%, five of our strategies returned +51.8%, +57.5%, +96.9%, +119.0%, and even +158.9%.

This outperformance has not just been a recent phenomenon. From 2000 – Q3 2019, while the S&P averaged +5.6% per year, our top strategies averaged up to +54.1% per year.

See their latest picks free >>