IHS Markit (INFO) to Report Q3 Earnings: What’s in Store?
IHS Markit Ltd. INFO is set to report third-quarter fiscal 2018 results on Sep 25 before the bell.
Per our proven model, a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 — to beat estimates. We don’t recommend Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement especially if they have a negative Earnings ESP.
IHS Markit’s surprise history has been impressive, having surpassed estimates in each of the trailing four quarters, delivering an average beat of 6.2%.
So far this year, the stock has gained 22.3%, outperforming the S&P 500’s 9.6% rally.
Let’s see how things are shaping up for this announcement
IHS Markit’s second-quarter adjusted EPS of 61 cents surpassed the Zacks Consensus Estimate and increased 17% year over year on the back of strong operating performance.
Total revenues of $1 billion also surpassed the consensus mark and increased 11% from the year-ago quarter, driven by strong segmental performance.
Factors Likely to Influnence Q3 Results
IHS Markit has been experiencing broad-based growth across the company, backed by strong performance by all businesses.
IHS Markit Ltd. Revenue (TTM)
The company’s Transportation segment has been benefiting from continued strength across autos, aerospace and defense, and maritime and trade businesses. Financial services sector is also in good shape, courtesy of strong performance across pricing, indices, managed loan services, valuation services, reg and compliance products, and enterprise data management offerings.
Further, improving end markets and operational changes made within product design, ECR and TMT businesses, are benefiting the CMS segment. Strength across upstream energy business as well as mid and downstream businesses has been aiding the Resources segment.
Stocks That Warrant a Look
Here are a few stocks from the broader Business Services sector that investors may consider, as our model shows that these also have the right combination of elements to beat on earnings in their upcoming releases.
Paychex PAYX has an Earnings ESP of +0.90% and a Zacks Rank #2. The company is slated to report first-quarter fiscal 2019 results on Oct 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Automatic Data Processing ADP has an Earnings ESP of +0.76% and a Zacks Rank of 3. The company is slated to report first-quarter fiscal 2019 results on Oct 31.
Gartner IT has an Earnings ESP of +4.50% and a Zacks Rank #3. The company is expected to report third-quarter 2018 results on Nov 1.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it’s predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce “the world’s first trillionaires,” but that should still leave plenty of money for regular investors who make the right trades early.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
IHS Markit Ltd. (INFO): Free Stock Analysis Report
Gartner, Inc. (IT): Free Stock Analysis Report
Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report
Paychex, Inc. (PAYX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research