McGraw Hill Financial, Inc. (NYSE: MHFI) reported second quarter 2014 results with revenue of $1.35 billion, an increase of 8% compared to the same period last year. Taking into consideration the sale of Aviation Week as well as the sale of Financial Communications and the shutdown of several small products within S&P Capital IQ, organic revenue increased 9%. Net income and diluted earnings per share from continuing operations were $292 million and$1.06, respectively.
Adjusted net income from continuing operations increased 14% to $292 million and adjusted diluted earnings per share from continuing operations increased 15% to $1.06. The adjustments were in the second quarter of 2013 and included costs necessary to establish the separation of McGraw-Hill Education. There were no adjustments in the second quarter of 2014.
“Revenue growth was led by Standard & Poor’s Ratings Services and J.D. Power, each with double-digit growth. Platts, S&P Capital IQ, and S&P Dow Jones Indices all contributed high-single digit growth. The strong performance across all of our business units exemplifies what an outstanding portfolio of assets McGraw Hill Financial possesses,” said Douglas L. Peterson, President and Chief Executive Officer ofMcGraw Hill Financial. “In addition, the Company delivered adjusted diluted EPS growth of 15% despite facing the most difficult EPS comparison of the year in the second quarter.”
The Outlook: Based upon the strong results in the quarter, and its view of the second half of the year, the Company is increasing its adjusted earnings per share guidance by $0.05 to a range of $3.80 to $3.90.
Source: McGraw Hill Financials