Information and analytics company IHS Inc. (IHS) said Monday that its second quarter profit rose 11% from last year, helped by continued strong revenue growth in all three of its operating regions.
The company's quarterly earnings per share, excluding items, also came in above analysts' expectations. At the same time, the company raised the low end of its full year earnings forecast range.
"Strong second-quarter results were highlighted by solid top-line growth, meaningful margin expansion, robust free cash flow generation, new product introduction and continued investment in the future of our company," said Jerre Stead, IHS chairman and chief executive officer. "We finished the first half of the year with momentum and expect to deliver an even better second half of 2012."
Separately, IHS announced the commencement of a secondary public offering of 8 million shares of its Class A common stock by Conscientia Investment Ltd. The selling shareholder also expects to grant the underwriter a 30-day option to purchase up to an additional 1.2 million shares. IHS will not receive any of the proceeds from the sale of shares in the offering.
IHS shares are currently losing 4.63% in after hours trading after closing the day's regular trading session at $105.84, up $1.46 or 1.40%. The shares trade in a 52-week range of $67.88 to $104.93.
IHS posted solid top-line growth for the second quarter, with both subscription and non-subscription revenue growing significantly. The company also grew its revenue in all three of its operating regions.
Subscription revenue for the quarter increased 15% to $287.3 million, while non-subscription revenue surged 37% to $99.9 million.
For the second quarter, the company's Americas revenue increased 18% to $230 million, while EMEA revenue grew 19% to to $114 million and APAC revenue rose 31% to $43 million.
The company has also embarked on an aggressive acquisition program in the last several years to expand its offerings and boost revenue growth.
Englewood, Colorado-based IHS reported net income for the second quarter of $44.2 million or $0.66 per share, compared to $39.9 million or $0.61 per share for the year-ago quarter.
Excluding items, adjusted earnings for the second quarter were $0.97 per share, compared to $0.83 per share in the prior year quarter.
On average, 10 analysts polled by Thomson Reuters expected the company to earn $0.94 per share for the second quarter. Analysts' estimates typically exclude special items.
Total revenue for the second quarter rose 20% to $387.16 million from $323.12 million in the same quarter last year, driven by 7% organic growth and 14% acquisitive growth. Ten analysts had a consensus revenue estimate of $383.53 million for the second quarter.
Subscription revenue for the quarter increased 15% to $287.3 million, while non-subscription revenue surged 37% to $99.9 million.
For the second quarter, the company's Americas revenue increased18% to $230 million, while EMEA revenue grew 19% to to $114 million and APAC revenue rose 31% to $43 million.
For the fiscal year ending November 30, 2012, IHS now expects all-in revenue of $1.53 billion to $1.58 billion and adjusted earnings of $3.88 and $4.01 per share. Previously, the company expected all-in revenue of $1.525 billion to $1.575 billion and adjusted earnings of $3.84 to $4.01 per share.
Analysts currently expect the company to earn $3.97 per share on revenue of $1.55 billion for the fiscal year 2012.
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