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IHS Markit's (INFO) Q4 Earnings Beat Estimates, Increase Y/Y

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·3-min read
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IHS Markit Ltd. INFO reported impressive fourth-quarter fiscal 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.

Adjusted earnings per share (excluding 98 cents from non-recurring items) of 85 cents beat the consensus mark by 1.2% and increased 18.1% on a year-over-year basis. Total revenues came in at $1.18 billion, surpassing the consensus mark by 3.2% and increasing 6.2% from the year-ago quarter’s levels on a reported basis and 10% organically.

Shares of IHS Markit have gained 33.9% in the past year compared with 3.8% growth of the industry it belongs to.

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Quarterly Details

Financial services segment’s revenues increased 3% year over year on a reported basis and 12% on an organic basis to $473 million. Revenues in the Resources segment totaled $215 million, up 2% year over year on a reported basis and 2% organically.

IHS Markit Ltd. Price, Consensus and EPS Surprise

IHS Markit Ltd. Price, Consensus and EPS Surprise
IHS Markit Ltd. Price, Consensus and EPS Surprise

IHS Markit Ltd. price-consensus-eps-surprise-chart | IHS Markit Ltd. Quote

The Transportation segment witnessed year-over-year revenue growth of 12% on a reported basis, amounting to $351 million. Revenues increased 12% organically.

Revenues in the Consolidated Markets & Solutions segment amounted to $137 million, up 9% year over year on a reported basis and 10% organically.
Recurring fixed revenues of $874.1 million were up 8% year over year on a reported basis and 8% organically. Recurring variable revenues of $144.4 million fell 9% year over year on a reported basis but rose 11% on an organic basis. Non-recurring revenues totaled $157.8 million, up 14% year over year on a reported basis and 15% organically.

Adjusted EBITDA of $530.5 million was up 14% from the year-ago quarter’s levels. Adjusted EBITDA margin surged 310 basis points (bps) year over year to 45.1%.

IHS Markit ended the quarter with a cash and cash equivalent balance of $293.1 million compared with $338 million in the prior quarter. The long-term debt was $3.9 billion compared with $4.6 billion in the previous quarter.

Cash flow from operations and free cash flow amounted to $449 million and $374.7 million, respectively, in the quarter. CapEx was $74.3 million. The company paid out $79.8 million in dividends in the quarter.

Zacks Rank and Stocks to Consider

IHS Markit currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Business Services sector are WEX Inc. WEX, Cross Country Healthcare, Inc. CCRN and Genpact Limited G.

WEX has an expected revenue growth rate of around 17.8% for full year 2021. WEX has a trailing four-quarter earnings surprise of 8.6%, on average.

WEX’s shares have surged 12.6% in the past month. It has a long-term earnings growth of 28%. WEX carries a Zacks #2 (Buy) Rank.

Cross Country Healthcare has an expected revenue growth rate of around 94.3% for the full year 2021. CCRN has a trailing four-quarter earnings surprise of 75%, on average.

Cross Country Healthcare’s shares have surged 98.1% in the past year. It has a long-term earnings growth of 21.5%. CCRN sports a Zacks #1 Rank.

Genpact has an expected revenue growth rate of around 7.6% for the full year 2021. It has a trailing four-quarter earnings surprise of 15.1%, on average.

Genpact’s shares have surged 28.8% in the past year. It has a long-term earnings growth of 14.8%. G carries a Zacks #2 Rank.


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Genpact Limited (G) : Free Stock Analysis Report

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WEX Inc. (WEX) : Free Stock Analysis Report

IHS Markit Ltd. (INFO) : Free Stock Analysis Report

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