Markit Ltd. (MRKT) Reports In-Line Q1 EPS; Approves $500M Buyback Plan, Files for Secondary Offering

Markit Ltd. (NASDAQ: MRKT) reported Q1 EPS of $0.36, in-line with the analyst estimate of $0.36. Revenue for the quarter came in at $271.5 million versus the consensus estimate of $272.1 million.

Share repurchase programme authorisation and filing for secondary offering

Our board of directors authorised the repurchase of up to $500 million of our common shares over the next two years, at the discretion of our management. Ongoing share repurchases will generally be funded using our existing cash, cash equivalents, marketable securities and future cash flows, or through the incurrence of short or long term indebtedness. At management’s discretion, we may repurchase our common shares on the open market from time to time, in privately negotiated transactions or block transactions, or through an accelerated repurchase agreement. The timing of such repurchases depends on availability of common shares, price, market conditions, alternative uses of capital, and applicable regulatory requirements. The programme may be modified, suspended or terminated at any time without prior notice.

Markit also filed a registration statement today with the Securities and Exchange Commission related to a proposed secondary offering of common shares by certain of its existing shareholders. No new shares will be issued in connection with this offering and we will not receive any of the proceeds from the sale of the shares.

We intend to use up to $350 million of the share repurchase authorisation in the near term to execute share repurchases from certain existing shareholders concurrently with this proposed secondary offering, opportunistically in the open market or through privately negotiated transactions.

For earnings history and earnings-related data on Markit Ltd. (MRKT) click here.

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