IHS Markit’s 4Q Sales Lag Street Estimates

IHS Markit reported mixed 4Q results on Wednesday as the company’s top-line fell short of analysts’ estimates, while the bottom-line came ahead of expectations. Shares of information and analytics solution providers closed 1.5% lower on Wednesday.

IHS Markit’s (INFO) 4Q revenue fell 1% to $1.107 billion and missed the Street consensus of $1.110 billion. Adjusted earnings per share increased 11% to $0.72 year-on-year and topped analysts’ estimates of $0.67.

The company said that the revenue decline reflected weakness in its transportation, resources, and consolidated markets & solutions segments, which more than offset strong sales in its financial services division. (See INFO stock analysis on TipRanks)

Last month, BMO Capital analyst Jeffrey Silber raised the stock’s price target to $99 (15.9% upside potential) from $82 and reiterated a Hold rating following the company’s proposed $44 billion merger deal with S&P Global. Silber sees the deal as reasonably valued and expects no other third-party bid given the size of the transaction.

Overall, consensus among analysts is a Moderate Buy based on 2 Buys and 6 Holds. The average price target of $102.17 implies upside potential of 19.6% to current levels. Shares were up by 6.9% over the past year.

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