IHS Markit Ltd(NASDAQ: INFO) has turnaround to profit in the fourth quarter 2016 ended 31st December after posting a loss in the previous quarter due to merger-related costs. INFO has resulted after the merger of IHS Inc. and Markit Ltd. in 2016.
IHS Markit has reported the adjusted earnings per share growth of 48 cents, beating the analysts’ estimates for the adjusted earnings per share of 45 cents. The company had reported the adjusted revenue growth of 57 percent to $873.8 million in the fourth quarter 2016, beating the analysts’ estimates for revenue of $870.4 million. As a result, IHS Markit stock rose over 1.8% 10:35 AMEST January 17th; Source: Google finance).
Moreover, in the fourth quarter the Resources business segment posted the Adjusted EBITDA growth of 2 percent to $92 million and the revenue fall 1 percent to $214 million, and declined 10 percent organically for the recurring-based business. The transportation in the Q4 2016 has posted growth of 18 percent, to $235 million in the revenue and included 9 percent organic growth for the recurring-based business. The Adjusted EBITDA for Transportation has increased 28 percent, to $101 million. The revenue for Financial Services was $292 million, and included 4 percent total organic growth and Adjusted EBITDA for Financial Services was $125 million in Q4 2016. In addition, the revenue for Consolidated Markets & Solutions (CMS) in the fourth quarter fall 6 percent to $133 million and the Adjusted EBITDA for CMS grew 6 percent to $36 million.
Meanwhile, IHS Markit fourth quarter results of 2016 are adversely affected by the recognition of $41 million of merger-related costs as well as higher levels of stock-based compensation expense and the adjusted earnings per share excludes these impacts.
For the FY 16, IHS Markit has posted 25% growth in the revenue. For FY 17, the earnings per share are expected to be in the range of $2.02 to $2.08 on the revenue expected to be in the range of $3.49 billion to $3.56 billion, including the organic growth of 2% to 4%. The analysts are expecting the earnings per share of $2.05 on revenue of $3.53 billion for FY 17.
INFO stock has risen 37.5% in the last one year (as of 10:35AM EST January 17th; Source: Google finance).