UPDATE: Markit Posts Better-Than-Expected Q2 Results

Markit

reported upbeat results for the second quarter. The London-based company's quarterly pretax income dropped 25% to $39 million. The latest quarter income included a net expense of $31.3 million mostly associated with the initial public offering. On an adjusted basis, Markit's profit rose 7.7% to $120 million. Its adjusted earnings per share declined to $0.37 from $0.41, beating analysts' estimates of $0.33 per share. Markit's sales climbed 11% to $264.6 million, versus estimates of $256 million. On a constant currency basis, revenue increased 7.1%. Sales at solutions segment climbed 35.7% to $70.3 million, while sales at the processing segment rose 1.7% to $72.1 million. Revenue at the information segment gained 5.7% to $122.2 million in the quarter. Recurring fixed revenue, as a percentage of total revenue, rose to 50.8% from 49.9%, while non-recurring revenue climbed to 5.3% from 3.8%. Its adjusted EBITDA climbed 7.7% to $120.0 million in the quarter. Operating expenses surged 13.9% to $144.6 million. Lance Uggla, chairman and chief executive officer said, “Notwithstanding the continuing challenges in the financial markets, particularly in fixed income, we remain well positioned to deliver on our longterm financial objectives of organic revenue growth of 5% to 7%, overall double digit revenue growth including acquisitions and Adjusted EBITDA margin in the low to mid 40s.” Markit shares fell 2.06% to $25.63 at 11:00 a.m. ET.