IHS Posts Upbeat Q2 Results, Lifts Outlook

IHS Inc. HIS reported stronger-than-expected results for its fiscal second quarter and raised its forecast for the full year. IHS now projects full-year earnings of $5.80 to $6 per share, versus prior forecast of $5.77 to $5.97 per share. The company now expects revenue of $2.3 billion to $2.34 billion, versus its earlier outlook of $2.27 billion to $2.31 billion. The Englewood, Colorado-based company reported a quarterly profit of $51 million, or $0.74 per share, versus a year-ago profit of $55.5 million, or $1.47 per share. Excluding certain items, the company's profit surged to $1.50 per share from $1.47 per share. Its revenue rose 4.1 percent to $591.4 million. However, analysts were expecting a profit of $1.45 per share on revenue of $575.4 million. Its total organic revenue gained 1 percent in the quarter. Subscription revenue climbed 5 percent to $459.7 million on an organic basis, whole non-subscription revenue slipped 12 percent to $131.7 million on an organic basis. Revenue for Americas gained 7 percent to $402 million in the second quarter, while revenue for EMEA slipped 2 percent, to $137 million. Revenue for APAC rose 1 percent to $53 million in the quarter. Adjusted EBITDA increased 7 percent to $185 million. The company's board also announced a new $500 million share repurchase program. "We continue to see strength in our Industrials product offerings growth, offset by lower Resources revenue as a result of market pressure in our energy product offerings," said Todd Hyatt, IHS chief financial officer. "Despite the macro industry situation, we like our energy assets and are encouraged by the resiliency of the subscription business, which we expect will deliver flat sales in an environment where energy spend has been significantly reduced." IHS shares rose 2.18 percent to close at $128.63 yesterday.