IHS Markit reports £127.61 million of net income in fiscal Q3

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Sep 29, 2020
  • IHS Markit reports £127.61 million of net income in fiscal third quarter.
  • Its revenue came in 0.24% higher than the Zacks Consensus Estimate.
  • Markit refrained from giving future guidance due to COVID-19 uncertainty.

IHS Markit (NYSE: INFO) published its quarterly results for the fiscal third quarter on Tuesday before the bell that topped analysts’ estimates for earnings and revenue. The financial information and analytics provider registered £127.61 million of net income in Q3 that translates to 31.90 pence of diluted earnings per share.

At a per-share price of £62.54, IHS Markit has recovered close to 80% since March when it touched a year to date low of £35.35 per share. At the start of 2020, shares of the company were trading at £59. Learn more about the financial analysis of a company.

Markit’s Q3 financial results versus analysts’ estimates

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Markit reported £830 million of revenue in the third quarter. Adjusted for one-time items, its earnings came in at 59.92 pence per share. In comparison, the Zacks Consensus Estimate for the company’s per-share earnings stood at a lower 54 pence. Its revenue, on the other hand, was about 0.24% higher than the forecast.

In the same quarter last year, Markit had recorded 52.14 pence of earnings per share on £860 million of revenue. In the prior quarter (Q2), it had posted a 10% decline in revenue due to the novel COVID-19 challenges.

The company valued its cash flow at £313.59 million from operations. Its free cash flow, as per the report on Tuesday, stood at £263.79 million. In separate news from the U.S., discount retailer Big Lots estimated up to 54.47 pence of per-share earnings in the current quarter that will conclude on 31st October, versus a much lower 16.34 pence per share expected.

Markit refrains from giving future financial guidance

IHS Markit refrained from giving its guidance for the future on the back of Coronavirus uncertainty. COVID-19 has so far infected more than 33 million people worldwide and caused over 1 million deaths.

Other prominent figures in Markit’s earnings report on Tuesday include £347.05 million of revenue (4% annualised growth) from financial services. Transportation revenue in Q3 printed at £232.66 million (5% annualised decline). Markit generated £161.85 million of revenue (9% annualised decline) from resources and £94.15 million from CMS (Consolidated Markets & Solution) in the recent quarter.

IHS Markit performed fairly upbeat in the stock market last year with an annual gain of more than 35%. At the time of writing, it has a market cap of £25 billion and a price to earnings ratio of 40.69.

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