McGraw Hill Financial Posts Upbeat Q2 Earnings, Plans To Acquire SNL Financial

reported upbeat earnings for the second quarter and announced its plans to acquire SNL Financial for $2.225 billion in cash. The New York-based company reported a quarterly profit of $353 million, or $1.28 per share, compared to $292 million, or $1.06 per share, in the year-ago quarter. Excluding non-recurring items, adjusted EPS from continuing operations climbed 17 percent to $1.21. Its revenue gained 3 percent year-over-year to $1.34 billion. However, analysts were expecting earnings of $1.13 per share on revenue of $1.36 billion. Revenue for its Standard & Poor's Ratings Services segment declined 1 percent to $658 million in the recent quarter, while S&P Capital IQ revenue rose 6 percent to $324 million. S&P Dow Jones Indices revenue climbed 11 percent to $148 million in the second quarter, while Commodities & Commercial Markets revenue climbed 7 percent to $234 million. During the quarter, McGraw Hill repurchased approximately 1.6 million shares. "Excluding the impact of foreign exchange, the Company delivered 6% revenue growth. That, combined with excellent cost control, led to significant margin expansion by every business segment," said Douglas L. Peterson, President and Chief Executive Officer of McGraw Hill Financial. "This was particularly noteworthy in the face of declining oil prices, as well as turbulent global macroeconomic conditions, largely due to uncertainty surrounding Greece and China, which curtailed debt issuance outside the United States." The company affirmed its full-year adjusted earnings forecast of $4.35 to $4.45 per share. McGraw Hill shares fell 0.86 percent to close at $105.58 on Friday.