IHS results beat estimates as non-subscription business grows
* Third-quarter adjusted earnings $1.27/share vs est $1.18
* Revenue $480.3 mln vs est $468.5 mln
* Non-subscription revenue rises 27 pct
By Sruthi Ramakrishnan
Sept 19 (Reuters) - Research firm IHS Inc reported better-than-expected quarterly results as a major product release and demand for consulting services boosted non-subscription revenue, and it said strong demand was continuing in the current quarter.
IHS, whose publications include include Jane's Defence Weekly, provides analysis and information on areas including energy, product design and the environment.
Revenue in the company's non-subscription business jumped 27 percent to $115.3 million in the third quarter, compared with a 5 percent drop a year earlier. The business, which includes consulting, software licensing and events, accounted for 24 percent of overall revenue last year.
The release of an engineering standard for boiler pressure vessels, which the company issues every two years, brought in millions of dollars in revenue in the quarter, Chief Executive Scott Key told Reuters.
IHS also sees a strong consulting deals pipeline heading into the fourth quarter after the strongest month of consulting sales in about a year in the latest quarter, Key said.
Revenue in IHS's larger subscription business increased 24 percent to $365 million, up from average quarterly growth of 9.3 percent over the last year.
"We had really solid pipeline in the subscription business and we see that improving going forward," Key said.
Net income fell to $23.4 million, or 35 cents per share, in the third quarter, from $44.1 million, or 66 cents per share, a year earlier. Excluding items, IHS earned $1.27 per share.
Revenue rose 25 percent to $480.3 million.
Analysts on average had expected earnings of $1.18 per share on revenue of $468.5 million, according to Thomson Reuters I/B/E/S.
IHS raised the lower end of its adjusted earnings forecast by 1 cent for the year ending Nov. 30 to exclude amortization.
The company last month raised its full-year adjusted earnings forecast to $4.74-$5.00 per share on revenue of $1.80 billion-$1.82 billion to account for its purchase of R.L. Polk & Co, owner of used-car history provider Carfax.
IHS's rivals include units of Thomson Reuters Corp , SAP, McGraw-Hill Cos Inc, Accenture Plc and Deloitte.
Shares of the company, which have risen 3 percent since the company updated its earnings forecast, closed at $114.90 on the New York Stock Exchange on Wednesday.
- Lost airliner was diverted deliberately: Malaysian PM |
- Exclusive: Radar data suggests missing Malaysia plane deliberately flown way off course - sources
- Malaysia PM says lost plane's movements indicate a deliberate act
- UPDATE 2-Satellite data shows missing Malaysia plane may have flown thousands of miles-source
- UPDATE 1-Rolls-Royce concurs with Malaysia on missing jet's engine data