Stock Monitor: Steel Connect Post Earnings Reporting
LONDON, UK / ACCESSWIRE / July 13, 2018 / If you want access to our free earnings report on IHS Markit Ltd (NASDAQ: INFO), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=INFO. IHS Markit reported its second quarter fiscal 2018 operating and financial results on June 26, 2018. The financial information services provider outperformed top- and bottom-line expectations. Additionally, the Company provided guidance for the fiscal year 2018. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, IHS Markit most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For the second quarter fiscal 2018 ended May 31, 2018, IHS Markit generated revenue of $1.01 billion, including total revenue growth of 11% and total organic revenue growth of 8%. The Company had reported revenue of $906.1 million in Q2 FY17. IHS Markit's reported numbers beat analysts' estimates by $35.88 million.
For Q2 FY18 IHS Markit reported net income of $114.1 million, or $0.28 per diluted share, compared to $99.3 million, or $0.24 per diluted share. On an adjusted basis, IHS Markit reported earnings of $0.61 per share compared to $0.52 per share. The Company's earnings surpassed Wall Street's estimates of $0.57 per share.
IHS Markit's Segment Results
During Q2 FY18, revenue for the Resources segment increased 6% to $237.0 million, with recurring revenue increasing 3% organically. The segment's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) rose 1% to $101 million in the reported quarter.
For Q2 FY18, the Transportation segment's revenue surged 22% to $296.3 million, and included 12% organic growth for the recurring-based business. The segment's adjusted EBITDA advanced 27% to $125 million in the reported quarter.
The Consolidated Markets & Solutions (CMS) segment generated revenue of $138.9 million, reflecting growth of 6% compared to the year ago same period, and had 3% organic growth for the recurring-based business. The segment's adjusted EBITDA fell 6% to $30 million on a y-o-y basis in the reported quarter.
IHS Markit's revenue for Financial Services increased 9% to $336.1 million and included 7% total organic growth for Q2 FY18. The segment's reported quarter adjusted EBITDA rose 12% to $156 million.
Cash Matters
For Q2 FY18, IHS Markit generated cash flow from operations of $383 million and free cash flow of $323 million. The Company's trailing 12-month free cash flow improved to $851 million and represented a conversion rate of 58%. Excluding acquisition-related costs, conversion was 64%.
IHS Markit's reported quarter-end debt balance was $4.5 billion, which represented a gross leverage ratio of approximately 2.7x on a bank-covenant basis, and the Company closed the quarter with $159 million of cash. IHS Markit's fixed debt as a percentage of total debt was 55%.
Outlook
For the year ending November 30, 2018, IHS Markit is forecasting revenue in the range of $3.85 billion to $3.90 billion, including total organic growth of 5% to 6%. The Company is expecting adjusted EBITDA at the upper end of the range of $1.500 billion to $1.525 billion, and adjusted earnings in the band of $2.23 to $2.27 per diluted share.
Stock Performance Snapshot
July 12, 2018 - At Thursday's closing bell, IHS Markit's stock was slightly up 0.30%, ending the trading session at $52.97.
Volume traded for the day: 1.17 million shares.
Stock performance in the last month - up 4.68%; previous three-month period - up 8.75%; past twelve-month period - up 19.09%; and year-to-date - up 17.32%
After yesterday's close, IHS Markit's market cap was at $20.83 billion.
Price to Earnings (P/E) ratio was at 46.14.
The stock is part of the Services sector, categorized under the Business Services industry. This sector was up 0.8% at the end of the session.
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