McGraw Hill Third-Quarter Profit Beats Analysts' Estimatesby
McGraw Hill Financial Inc., owner of the world’s largest credit rater, reported a 30 percent increase in third-quarter profit, beating analysts’ estimates despite a global decline in bond issuance.
Net income climbed to $281 million from $217 million a year earlier, the New York-based company said Tuesday in a statement. Excluding income from portions of a joint venture and an investment in a business the company doesn’t fully own, net income increased to $252 million.
Profit excluding certain items including insurance recoveries and charges from government ratings probes was $1.19 a share, exceeding the $1.07 average estimate of 11 analysts in a Bloomberg survey.
Revenue increased 5 percent to $1.32 billion. The company’s Standard & Poor’s ratings unit reported revenue of $587 million, down from $604 million a year earlier, due to decline in global bond issuance and foreign exchange rates, the company said.
McGraw Hill announced last week it is exploring a sale of its market research business, J.D. Power, as it concentrates its focus on capital and commodities markets. The unit has estimated annual revenue of almost $350 million in 2016, the company said in Tuesday’s statement.
The company’s shares rose 3.5 percent to $95.47 at 10:19 a.m. in New York. They were up 3.7 percent this year through Monday.