Shares of IHS Markit Ltd. (INFO, Financial) jumped 0.5% on Tuesday after announcing third-quarter results. The company posted earnings of 58 cents per share and revenue of $1 billion, reflecting a 10.5% year-over-year growth. It managed to beat earnings estimates by 3 cents and revenue expectations by $8.96 million.
By segment, revenue for resources increased $9 million, or 5%, to $212 million, with recurring revenue increasing 4% organically. The adjusted earnings before interest, taxes, depreciation and amortizationdeclined $3 million, or 4%, to $85 million. Transportation revenue increased $40 million, or 16%, to $297 million, including 10% organic growth for the recurring-based business. The adjusted EBITDA for Transportation increased $18 million, or 16%, to $128 million. Consolidated Markets & Solutions revenue decreased $2 million, or 1%, to $137 million and achieveda 3% organic growth for the recurring-based business. The adjusted EBITDA decreased $2 million, or 5%, to $30 million. Finally, Financial Services revenue rose $49 million, or 16%, to $355 million and included 8% total organic growth. The adjusted EBITDA increased $18 million, or 13%, to $156 million.
Looking ahead, the company now expects revenue in a range of $4 billion to $4.02 billion, an adjusted EBITDA in a range of $1.55 billion to $1.56 billion and adjusted earnings per share between $2.25 and $2.27 per diluted share.
Shares of FactSet Research Systems Inc. (FDS, Financial) fell almost 2% after reporting fourth-quarter earnings per share of $2.20 on revenue of $345.9 million, a 5.9% year-over-year growth. The company fell 1 cent short of earnings estimates by $0.61million short of revenue expectations.
Organic revenues grew 5.3% from the prior-year period to $347.1 million due to higher sales of research and analytics products, content and technology solutions and wealth management solutions.
The operating margin increased to 25.5% compared with 25.2% for the same quarter last year. The adjusted operating margin rose to 31.3%, compared with 31.2% in the prior-year period.
Looking ahead to fiscal 2019, the company expects revenue in the range of $1.41 billion to $1.45 billion. The operating margin is expected to be in the range of 29% to 30% and the adjusted operating margin to be between 31.5% and 32.5%. Diluted earnings per share are projected in the range of $8.70 to $8.90, with adjusted diluted earnings between $9.45 and $9.65 per share.
Disclosure: The author holds no positions in any stocks mentioned.
