Houghton Miff (HMHC) Misses Q3 EPS by 36c

Houghton Miff (NASDAQ: HMHC) reported Q3 EPS of $0.75, $0.36 worse than the analyst estimate of $1.11. Revenue for the quarter came in at $551 million versus the consensus estimate of $626.53 million.

Linda K. Zecher, HMH’s President and Chief Executive Officer, commented, “The adoption of digital content has outpaced our expectations so far this year. This has played an integral role in the growth of our strong market share, which is now at 52% of the new adoption market bringing our overall market share to 42%. The powerful combination of quality content and technological innovation is enabling our leadership as a partner in learning for districts across the country.”

Eric Shuman, Chief Financial Officer of HMH, stated, “HMH experienced a strong uptick in billings during the third quarter versus the same period last year, with increased digital sales and a change in product mix giving rise to a higher level of deferred revenue. This deferred revenue inspires our confidence in our long-term revenue pipeline. We believe that our ability to continue to have strong cash flows in the future combined with prudent cost and capital management will enable us to deliver long-term value to our shareholders.”

Zecher added, “While the increase in digital sales is undoubtedly a positive trend that we believe will support sustainable and meaningful long-term growth, the resulting increase in deferred revenue has triggered a shift in our short-term revenue outlook. As a result, we expect full year 2014 net sales to be approximately flat compared to the full year 2013. Additionally, we expect our cash and cash equivalents and short-term investments balance at year end will be approximately $675 to $725 million as a result of the increased billings.”

For earnings history and earnings-related data on Houghton Miff (HMHC) click here.

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