IHS Inc. (IHS), an information service company, said Thursday its fourth quarter profit increased nearly 24% over last year, boosted by revenue growth from all regions, and contribution from acquisitions. The company's adjusted earnings exceeded Street consensus, as did quarterly revenues. Looking ahead, the company reaffirmed its revenue outlook for fiscal year 2010.
The Englewood, Colorado-based company posted net income of $41.2 million or $0.64 per share for the fourth quarter, up from $33.3 million or $0.53 per share reported in the prior year quarter.
Excluding items, adjusted earnings rose to $0.75 per share from $0.58 in the year-ago quarter. On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.66 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Operating income for the quarter grew 18% to $53.8 million from $45.7 million in the previous year quarter.
A provider of critical information and insights for governments and other companies, IHS' fourth quarter revenue increased 11% to $257 million from $231 million in the same quarter last year, helped mainly by acquisitions.
Seven analysts had a consensus revenue estimate of $258.65 million for the fourth quarter.
Organic revenue growth in the fourth quarter of 2009 was 2% overall, and 5% for the subscription-based portion of the business, which represented 76% of total revenue.
Revenue from the Americas (North and South America) segment grew 9% to $158 million. The EMEA (Europe, Middle East and Africa) segment revenue rose 15% to $78.8 million. The APAC (Asia Pacific) segment's revenue improved 16% to $20.4 million.
Total operating expenses for the fourth quarter increased to $203.3 million from $185.0 million in the prior year quarter.
During the fourth quarter, IHS withheld 18,810 shares valued at about $1 million to fund employee statutory withholding tax requirements stemming from employee equity awards.
As shares vest and tax withholdings come due, IHS withholds enough shares in treasury to cover the tax liability and make a payment to the tax authority out of corporate cash.
IHS ended fiscal year 2009 with $124 million of cash and cash equivalents, and $93 million of debt.
For the full year 2009, IHS reported net income of $135 million or $2.11 per share, compared to $99.0 million or $1.57 per share in the previous year. Excluding items, adjusted earnings grew to $2.62 per share from $2.05 per share in the prior year.
Annual revenue increased 15% to $967 million from $844 million in the year-ago.
Analysts estimated the company to report earnings of $2.54 per share on revenue of $968.81 million for the year 2009.
For fiscal year 2010, IHS still expects all-in revenue in the range of $1.04 billion to $1.08 billion, representing an 8% to 12% all-in growth over 2009. Adjusted earnings are estimated to be $2.87 per share for the year. The Street currently expects earnings of $2.87 per share on revenue of $1.07 billion for the year 2010.
IHS shares closed Thursday's regular trading session at $55.61, up 88 cents or 1.61%. However, in the after-hours, the share lost 88 cents or 1.58%.
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