Earnings: British firm IHS Markit posts massive slump in Q1 net profit

London-based analytics firm IHS Markit (Nasdaq: INFO) on Tuesday reported results for the first quarter of fiscal 2019. Revenue jumped 12% to $1.05 billion, while net attributable income slipped 55% to $109.7 million or 27 cents per diluted share.

Adjusted EBITDA soared 14% to $408 million, while adjusted earnings rose 13% to 60 cents per diluted share.

Cash flow from operations slipped 7% to $188 million, and free cash flow slumped 16% to $124.8 million.

The net income attributable to IHS Markit for the quarter included a one-time tax benefit associated with the US tax reform estimated at about $136 million.

CMS Segment falls short in Q1

In the first quarter revenue, all segments except Consolidated Markets & Solutions (CMS) saw a bump in revenue.

Resources revenue grew 6% to $217 million, while revenue for Transportation rose 7% to $288 million. Financial Services top-line jumped 28% to $409 million.

Only CMS fell short, with revenue slipping 8% to $29 million.

Outlook hints at further revenue growth

For the fiscal year 2019, IHS Markit now sees revenue in the range of $4.425 billion to $4.500 billion, with a total organic growth of 6-7% including Ipreo for the full 12 months.

Adjusted EBITDA is expected to be between $1.75 billion and $1.78 billion for the year, while adjusted earnings is touted to be $2.52-2.57 per diluted share.

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