Earnings Preview: McGraw-Hill (MHP)

The McGraw-Hill Companies, Inc. (MHP), the publisher and provider of financial information and media services, is scheduled to report its second-quarter 2010 financial results, before the market opens on Friday, July 23, 2010.

First-Quarter 2010, a Synopsis

McGraw-Hill reported better-than-expected first-quarter 2010 results, primarily driven by a recovery in global bond markets, strong performance in U.S. higher education and global energy information markets.

The company recorded a robust 63.9% growth in net income to $103.3 million or 33 cents per share from $63.0 million, or 20 cents per share, in the year-ago period. The quarterly results also topped the Zacks Consensus Estimate of 25 cents.

Total revenue for the quarter rose 3.7% year over year to $1,190.4 million, mainly due to growth in the Education and Financial Services segments, offset to a certain extent by a decline in its Information & Media segment.

Second-Quarter 2010 Consensus

Analysts surveyed by Zacks, expect McGraw-Hill to post second-quarter 2010 earnings of 60 cents a share. The current Zacks Consensus Estimate represents a year-over-year growth of 3.4%.

Of the 8 analysts covering the stock, 2 analysts have revised their estimates downwards in the last 30 days, pushing down the Zacks Consensus Estimate to 60 cents from 61 cents estimated earlier. However, in the last 7 days, only one analyst has lowered his estimate, leaving the consensus unchanged. The estimates in the current Zacks Consensus for the quarter range from a low of 57 cents to a high of 64 cents.
The analysts remained concerned about how the financial reform will impact S&P’s (a division of McGraw-Hill) position in the structured finance market.

Earnings Surprise History

With respect to earnings surprises, McGraw-Hill has topped the Zacks Consensus Estimate over the last four quarters in the range from 0.9% to 32.0%. The average remained at 16.0%. This suggests that Manpower has outperformed the Zacks Consensus Estimate by an average of 16.0% in the last four quarters.

MCGRAW-HILL COS (MHP): Free Stock Analysis Report
Zacks Investment Research

About Zacks Investment Research 1766 Articles

Zacks Investment Research is one of the most highly regarded firms in the investment industry. In 1978 Zacks originated the concept of utilizing earnings estimates revisions to make profitable investment decisions. Zacks offers multiple investment products and services to help investors achieve superior returns.

Visit: Zacks.com

Be the first to comment

Leave a Reply

Your email address will not be published.