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Key Takeaways From IHS Markit's 2nd-Quarter Results

The company posted an earnings and revenue beat

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Jun 23, 2021
Summary
  • All of the company’s divisions performed exceedingly well, recording year-over-year revenue growth
  • IHS Markit raised its adjusted earnings guidance for the full year
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Before the opening bell on June 23, IHS Markit Ltd. (

INFO, Financial) released the results for its fiscal second quarter of 2021, which ended on May 31. The financial information services provider surpassed earnings and revenue projections.

Snapshot of the quarter

The London-based company posted adjusted earnings of 81 cents per share in the second quarter, up from 69 cents in the year-ago quarter. Analysts had called for earnings of 80 cents per share.

Revenue of $1.181 billion was up from the $1.03 billion recorded in the prior-year quarter and surpassed projections of $1.14 billion. Growth in the financial services and transportation segments was aided by strong performance in the consolidated markets and solutions and resources segments.

Reflecting on the quarter, Chairman and CEO Lance Uggla said, “We had another strong quarter as all of our end markets continue to recover and our teams execute at a high level.”

Chief Financial Officer Jonathan Gear also commented on IHS Markit's performance, saying, “Our strong Q2 and first half results were in-line with our expectations and we remain on track to deliver strong full year results.”

Segment performance

In the Financial Services sector, revenue rose 11% in the second quarter to $493 million. That includes 9% organic growth. Quarterly adjusted Ebitda stood at $238 million, which reflected 68% growth over the past year.

The Transportation division saw revenue growth of 41% to $344 million, which includes 39% organic growth. Adjusted Ebitda came in at $171 million, which increased $69 million from the prior-year quarter.

Revenue of $203 million increased 1% on a year-over-year basis for the Resources segment. That included a flat organic revenue growth. By contrast, adjusted Ebitda declined by $5 million to $91 million.

In the Consolidated Markets and Solutions division, revenue surged 2% to $123 million, including the total organic revenue growth of 1% in the reported quarter. Quarterly adjusted Ebitda totalled $29 million, down 18% as compared to last year.

Financial forecast

IHS Markit has provided financial guidance for full fiscal 2021. The company projects revenue to fall within the range of $4.635 billion to $4.675 billion. That compares with its previous forecast of $4.535 billion to $4.635 billion. Adjusted earnings per share is anticipated to be between $3.15 and $3.17. The company previously forecasted earnings per share between $3.11 and $3.16.

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