McGraw-Hill Companies (NYSE:MHP) announced its results for the third quarter on November 2, 2012. McGraw-Hill produces a range of information products and services for the education, financial services, and business information markets.

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The Numbers: McGraw-Hill Companies beat expectations with its latest EPS and revenue figures. The company reported adjusted net income of $1.33 per share versus the $1.30 per share estimate and revenues of $1.95 billion versus the $1.59 billion estimate. Revenue climbed 2.4% from the same period last year. McGraw-Hill Companies' revenue rose last quarter after falling 2.1% to $1.55 billion in the second quarter. McGraw-Hill Companies reported net income of $314 million during the third quarter. This is a 14.1% decline from last year. Last quarter's falling profit ends a streak of three consecutive quarters of year-over-year profit increases.

Management Quote: "We are pleased by the success of our Growth and Value Plan and the strong results of the McGraw-Hill Financial businesses. McGraw-Hill Financial, which now includes the newly formed S&P Dow Jones Indices joint venture, achieved double-digit growth in revenue and adjusted operating profit in the quarter. McGraw-Hill Education, under the new leadership of Buzz Waterhouse, managed through the weakest K-12 market in a decade while accelerating digital products and services and building world-class capabilities to drive global growth," said Harold McGraw III, chairman, president, and chief executive officer of The McGraw-Hill Companies.

A Look Back: Net income has increased 5.3% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed 39.4% from the year-earlier quarter.

Looking Ahead: Analysts have a more positive outlook for the company's next-quarter performance. Over the past month, the average estimate for the fourth quarter has gone up from 70 cents per share to 71 cents. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. The average estimate for the fiscal year is $3.40 per share, a rise from $3.35 90 days ago.



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Tickers in this Article: MHP

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