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IHS Markit (INFO) to Post Q3 Earnings: What's in the Cards?

IHS Markit Ltd.'s (INFO) third-quarter fiscal 2021 earnings and revenues are likely to reflect strong segmental performance.

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This story originally appeared on Zacks

IHS Markit Ltd. INFO is scheduled to release third-quarter fiscal 2021 results on Sep 28, before the bell.

- Zacks

The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all of the last four quarters. It has a trailing four-quarter earnings surprise of 5.4%, on average.

IHS Markit Ltd. Price and EPS Surprise

 

IHS Markit Ltd. Price and EPS Surprise

IHS Markit Ltd. price-eps-surprise | IHS Markit Ltd. Quote

 

Expectations This Time Around

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $1.17 billion, indicating year-over-year growth of 9.2%. The top line is likely to have gained from strong performance in the Financial Services and Transportation segments.

In the transportation segment, the dealer-facing part of IHS Markit’s automotive offerings is likely to have experienced robust growth across CARFAX and automotive Mastermind in the quarter. Demand for products supporting OEMs, banking and insurance clients as well as parts manufacturers is expected to have increased significantly.

The Financial Services segment’s revenues are expected to have benefited from organic growth, driven by growth in demand for the company’s pricing, reference data and valuation offerings, strong growth in the equities regulatory reporting as well as trade and analytics platforms. The segment is likely to have benefitted from strong activity in equities and loan markets, combined with strength in customers in software solutions, corporate actions, regulatory and compliance offerings.

The consensus mark for earnings per share in the to-be-reported quarter is pegged at 83 cents per share, indicating year-over-year growth of 7.8%.  The bottom line is projected to have benefited from improvement in operating performance.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for IHS Markit this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

IHS Markit has an Earnings ESP of 0.00% and a Zacks Rank #3.You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Booz Allen Hamilton BAH has an Earnings ESP of +1.98% and a Zacks Rank #3.

Fidelity National Information Services FIS has an Earnings ESP of +0.81% and a Zacks Rank #3.

Trane Technologies TT has an Earnings ESP of +0.73% and a Zacks Rank #3.

 



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Fidelity National Information Services, Inc. (FIS): Free Stock Analysis Report

 

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Trane Technologies plc (TT): Free Stock Analysis Report

 

IHS Markit Ltd. (INFO): Free Stock Analysis Report

 

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