IHS Markit (INFO) Affirms FY16 Outlook; Guides FY17 Revenue Light of Views

November 14, 2016 4:02 PM EST
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IHS Markit (Nasdaq: INFO) announced it is reaffirming its 2016 revenue, Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) and Adjusted earnings per diluted share (Adjusted EPS) guidance as well as providing its financial guidance for the year ending November 30, 2017.

Outlook (forward-looking statement)

For the year ending November 30, 2016, IHS Markit expects:

  • Revenue trending slightly below the range of $2.735 billion to $2.765 billion;
  • Adjusted EBITDA tracking to the mid point of the range of $975 million to $995 million; and
  • Adjusted EPS toward the mid to high end of the range of $1.72 to $1.78 per diluted share.

For the year ending November 30, 2017, IHS Markit expects:

  • Revenue in a range of $3.490 billion to $3.560 billion, including total organic growth of 2 percent to 4 percent;
  • Adjusted EBITDA in a range of $1.375 billion to $1.400 billion; and
  • Adjusted EPS in a range of $2.02 to $2.08 per diluted share.

The Street sees revenue of $3.6 billion and EPS of $2.05.

Additionally, for the year ending November 30, 2017, IHS Markit expects:

  • Depreciation expense to be approximately $155 million to $165 million;
  • Net interest expense to be approximately $130 million to $140 million;
  • Amortization expense related to acquired intangible assets to be approximately $325 million to $340 million;
  • Stock-based compensation expense to be approximately $200 million to $220 million;
  • A GAAP effective tax rate of approximately 10 percent to 15 percent;
  • An adjusted effective tax rate of approximately 21 percent to 24 percent;
  • Weighted average diluted shares of approximately 413 million to 417 million;
  • Capital expenditures to be approximately 7 percent to 8 percent of revenue; and
  • Free cash flow conversion as a percentage of Adjusted EBITDA in the high 50's to 60 percent.

For additional information, see the related presentation materials posted to the company's website at investor.ihsmarkit.com.

The above outlook assumes no further currency movements, acquisitions, divestitures, pension mark-to-market adjustments or unanticipated events. See discussion of non-GAAP financial measures at the end of this release.

As previously announced, IHS Markit will hold a conference call and webcast to discuss this guidance on Monday, November 14, 2016 at 5:00 p.m. EST. The conference call will be simultaneously webcast on the Investor Relations section of the company’s website: investor.ihsmarkit.com.

The company also plans to discuss this guidance in a previously announced presentation at the J.P. Morgan Ultimate Services Investor Conference in New York tomorrow, November 15, 2016. The event is scheduled for 8:15 a.m. EST.



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