McGraw Hill Financial posts 4Q profit
McGraw Hill Financial Inc., the parent company of ratings agency Standard & Poor's, said Tuesday that it posted a profit during its fourth quarter after selling its education business.
The New York company's fourth-quarter results and outlook beat Wall Street expectations. Its shares rose $1.61, or 2.2 percent, to $76 in morning trading.
Net income rose to $171 million, or 62 cents per share, from a loss of $216 million, or 76 cents per share, in the same quarter a year ago. The year-earlier results were hurt by a charge on the pending sale of its education publishing unit. It sold that business in March for $2.4 billion and changed its name to McGraw Hill Financial from The McGraw-Hill Cos.
Adjusted to remove one-time charges and discontinued operations, earnings were 81 cents per share. Analysts expected 78 cents per share, according to FactSet.
Revenue rose 2 percent to $1.25 billion from $1.23 billion, above the average analyst estimate of $1.24 billion.
Revenue rose 18 percent at its S&P Dow Jones Indices unit, but slipped 2 percent at its biggest division, Standard & Poor's ratings services.
Full-year adjusted earnings totaled $3.33 per share with revenue of $4.88 billion.
For 2014, McGraw Hill Financial expects earnings per share between $3.75 and $3.85 and revenue growth in the mid-single digits. Analysts expect earnings per share of $3.74 and revenue of $5.19 billion, which implies growth of 6.5 percent over 2013.