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IHS Markit (INFO) to Post Q1 Earnings: What's in Store?

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IHS Markit Ltd. (INFO - Free Report) is scheduled to release first-quarter fiscal 2020 results on Mar 24, before the bell.

Shares of the company have inched up 1.3% in the past year against the industry’s decline of 8.3%.

Q4 Highlights

In fourth-quarter fiscal 2019, IHS Markit’s total revenues of $1.12 billion increased 5% on a year-over-year basis.

In fiscal fourth quarter, the company delivered adjusted EPS of 65 cents, up 14% year over year.

Q1 Expectations

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $1.08 billion, which indicates year-over-year growth of 3.4%. The top line is likely to have gained fromthe Transportation and Financial Services segments.

The consensus estimate for revenues in the Transportation segment isat $299 million, which indicates year-over-year increase of 3.8%. Strong performance across CARFAX’s used car listing and vehicle history report product offerings, compliance product offerings and increase in automotiveMastermind revenues are expected to have boosted the segment’s performance in the quarter to be reported.

The consensus mark for revenues in the Financial Services segment is pegged at $434 million, which indicates year-over-year growth of 6.1%.Strength in information and solutions product offerings as well as strong performance of Ipreo might have had a positive impact on the segment’s performance in the to-be-reported quarter.

The consensus mark for earnings per share (EPS) in the to-be-reported quarter is pegged at 63 cents, which indicates year-over-year growth of 5%. Margin expansion from revenue growth is expected to have boosted the company’s fiscal first-quarter bottom line.

Zacks Rank and Stocks to Consider

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

Few better-ranked stocks in the broader Zacks Business Services sector are Sykes Enterprises (SYKE - Free Report) , Omnicom (OMC - Free Report) and Genpact (G - 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 Sykes, Omnicom and Genpact is pegged at 10%, 5.6% and 14%, respectively.

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