Back to top

Image: Bigstock

IHS Markit's (INFO) Q2 Earnings Beat Estimates, Decline Y/Y

Read MoreHide Full Article

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

Adjusted earnings per share of 69 cents beat the consensus mark by 6.2% but decreased 3% on a year-over-year basis. Total revenues came in at $1.03 billion, missing the consensus mark by 2.1% and declining 10% from the year-ago quarter on a reported basis. Revenues declined 7% organically.

Shares of IHS Markit have gained 23% over the past year, outperforming the 18.1% rally of the industry it belongs to.

Quarterly Details

Revenues at the Resources segment totaled $219 million, down 12% year over year on a reported basis and 14% organically. The Transportation segment witnessed year-over-year revenue decline of 24% on a reported basis and 18% organically to reach $243 million.

Revenues at the Consolidated Markets & Solutions segment amounted to $121 million, down 10% year over year on a reported basis but up 2% organically. Financial services segment’s revenues increased 2% year over year to $444 million, with 3% organic growth.

Recurring fixed revenues of $755.2 million were down 4% year over year on a reported basis and 1% on an organic basis. Recurring variable revenues of $158 million grew 9% year over year on a reported basis and 10% on an organic basis. Non-recurring revenues totaled $113 million, down 45% year over year on a reported basis and 40% on an organic basis.

Adjusted EBITDA of $454 million declined 2% from the year-ago quarter. Adjusted EBITDA margin improved 320 points (bps) year over year to 44.2%.

IHS Markit ended the quarter with cash and cash equivalent balance of $207.8 million compared with $143.9 million in the prior quarter. Long-term debt was $5.1 billion compared with $5 billion in the previous quarter.

Cash flow from operations and free cash flow amounted to $278.2 million and $208.6 million respectively in the quarter. CapEx was $69.6 million. The company repurchased $250 million of shares and paid out $67.7 million in dividends in the quarter.

Zacks Rank and Stocks to Consider

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

Stocks that Warrant a Look

Here are a few stocks from the Zacks Business Services sector that are likely to beat on earnings this season.

Kforce (KFRC - Free Report) , with an Earnings ESP of +24.53% and a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CoreLogic (CLGX - Free Report) , with an Earnings ESP of +5.05% and a Zacks Rank of 3.

Republic Services (RSG - Free Report) , with an Earnings ESP of +10.04% and a Zacks Rank #3.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Republic Services, Inc. (RSG) - free report >>

CoreLogic, Inc. (CLGX) - free report >>

Kforce, Inc. (KFRC) - free report >>

IHS Markit Ltd. (INFO) - free report >>