ENGLEWOOD, Colo. (AP) — Business information and analytics firm IHS said Thursday that its third-quarter net income fell 47 percent, stung in part by higher acquisition-related costs. But its adjusted earnings and revenue topped Wall Street's view.
The company earned $23.4 million, or 35 cents per share, for the three months ended Aug. 31. A year earlier it earned $44.1 million, or 66 cents per share.
Acquisition-related costs rose to $14.5 million from $2.1 million due to its $1.4 billion acquisition of R.L. Polk, owner of the popular Carfax service, in July.
Excluding the acquisition-related costs and other items, earnings were $1.27 per share compared with $1.20 per share for the prior-year period. Analysts, on average, expected earnings of $1.18 per share, according to a FactSet survey.
Revenue climbed 25 percent to $480.3 million from $385.6 million, bolstered by increases in both subscription and non-subscription revenue. Wall Street was looking for $467.4 million in revenue.
The biggest revenue growth came in the Americas, up 32 percent. For Europe, the Middle East and Africa, revenue climbed 13 percent. It was also up 13 percent for the Asia Pacific region.
IHS Inc. still expects full-year adjusted earnings between $4.75 and $5 per share on revenue between $1.8 billion and $1.82 billion.
Analysts predict earnings of $4.87 per share on revenue of $1.81 billion.
Its shares finished at $114.90 in trading Wednesday.
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