McGraw Hill Financial posted mixed third quarter results wherein
adjusted earnings per share of $1.02 per share beat the Zacks
Consensus Estimate while rising 32% year over year. However,
revenues of $1,263 million failed to meet the Zacks Consensus
despite a 10% rise. Also, the company recorded a $60 million legal
charge pertaining to the DOJ's $5 billion civil lawsuit filed
against S&P Rating's services. Management also stated that
legal expenses are likely to shoot up in the following days as the
verdict remains pending. Nevertheless the company maintains a
positive attitude and has completed its portfolio restructuring
with the sale of its construction data unit. McGraw Hill Financial
has been shedding its non-core operations to focus on its
benchmarks, data and analytics business. Moreover it has stated
that it will pursue strategic acquisitions in the near future to
aid its goal of emerging as a leader in the global analytics arena.
Weighing the pros and cons, we reiterate our Neutral recommendation
on the stock.
McGraw-Hill Financial, Inc. (MHFI) is the provider of financial
information, and owns one of the top credit rating agencies
(Standard & Poor's). The McGraw-Hill Companies Inc.
rechristened as McGraw Hill Financial and commenced trading under a
new symbol "MHFI" on May 14, 2013.
The company now primarily focuses on capital and commodities
markets and includes iconic brands like S&P Ratings, S&P
Capital IQ, S&P Indices and Platts. The company currently
S&P Ratings Services: Standard & Poor's is one of the
world's foremost provider of credit ratings offering investors
information and independent benchmarks for their investment and
S&P Capital IQ: The segment provides risk evaluation,
investment research and data to potential investors, corporations,
governments, financial institutions, investment managers and
financial advisors globally.
S&P Dow Jones Indices: The company along with the CME Group,
announced the commencement of its index business with the launch of
S&P-Dow Jones Indices. It keeps track of different valuation
and index benchmarks for investment advisors, wealth managers, and
Commodities & Commercial Markets: The segment consists of
business-to-business companies focusing in commercial and
commodities markets, and comprises brands such as, J.D. Power and
Associates (acquired in 2005), and Platts.
On Nov 3, 2014, McGraw Hill Financial completed the divestiture
of McGraw Hill Construction to Symphony Technology Group.
McGraw Hill Financial, Inc. (MHFI): Read the Full
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