IHS Inc. said Tuesday profit in its latest quarter fell 8.2%, as
the information and analytics provider continues to grapple with
weak energy markets and foreign exchange impacts.
Results, though, topped expectations.
Earlier this month, IHS said former Chief Executive Jerre Stead
would reassume the top spot, after Scott Key resigned. Chief
Financial Officer Todd Hyatt on Tuesday said lower resources
revenue, resulting from market pressure in its energy business,
offset strength in the company's industrials segment. Given the
macro industry situation, Mr. Hyatt said IHS expects to deliver
"flat sales in an environment where energy spend has been
significantly reduced."
Still, the Colorado company lifted its full-year outlook, after
cutting it in March. IHS now expects per-share earnings of $5.80 to
$6, up from earlier guidance of $5.77 to $5.97, on $2.3 billion to
$2.34 billion in revenue, above its previous forecast of $2.27
billion to $2.31 billion. IHS, which generates about 40% of revenue
outside of the U.S., said the updated outlook assumes no further
currency movements.
In all for the quarter ended in May, IHS reported a profit of
$51 million, or 74 cents a share, down from a year-earlier profit
of $55.5 million, or $1.47 a share.
Excluding certain items, like stock based compensation expenses
and restructuring charges, per-share profit rose to $1.50 from
$1.47.
Revenue grew 4.1% to $591.4 million.
Analysts anticipated $1.45 in earnings per share and $575.4
million in sales.
Total organic revenue increased 1%. The company's biggest
top-line contributor, subscription revenue, rose 5% to $459.7
million on an organic basis.
Separately on Tuesday, IHS said its board approved a new $500
million repurchase program.
Shares in the company, up about 7% over the past three months,
were inactive premarket.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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