IHS Markit (INFO, $79.00) beats fiscal Q4 earnings and revenue expectations

IHS Markit Ltd. reported its fiscal fourth-quarter 2019 earnings and revenues – both of which surpassed Zacks Consensus Estimate.

The information provider company’s adjusted earnings for the quarter came in at 65 cents per share, beating the consensus estimate by 6.6%. The figure was +14% higher from the year-ago quarter.  

Total revenues of $1.12 billion, exceeded the consensus by 0.05%. Revenues increased + 5% year-over-year for the quarter.

Revenues at the company’s Resources segment rose +75 year-over-year to $237.6 million; recurring revenues of this segment grew +5% organically.

The Transportation segment’s revenue increased +9% year-over-year to $324.5 million. Recurring revenues at this segment climbed +12% organically.

CMS segment revenue declined -8% year over year, with 1% organic growth in recurring revenues.

The company’s Financial services segment’s revenues rose +5% year over year to $430.6 million; recurring revenue in this segment increased +8% organically.

Recurring fixed revenues increased +6% year-over-year to $810.1 million; they grew +7% on an organic basis. Recurring variable revenues rose +6% to $147.5 million, and +7% on an organic basis.

Non-recurring revenues fell -2% from the year-ago quarter to $162.8 million; they were up +1% on an organic basis.

Looking ahead, IHS Markit projects revenues of $4.52 billion to $4.59 billion, (including organic growth of 5% to 6%) for fiscal full year 2020. The Zacks Consensus Estimate for revenues is $4.41 billion.

IHS expects adjusted EBITDA for fiscal 2020 to range between $1.86 billion and $1.89 billion. It expects adjusted EPS range of $2.82 to $2.88. The Zacks Consensus Estimate for earnings is $2.58.

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