Earnings Preview: McGraw-Hill

Oct.23.09 | About: S&P Global (SPGI)

McGraw-Hill (MHP) is expected to report Q3 earnings before the market open on Monday, October 26 with a conference call scheduled for 8:30 am.


Analysts are looking for EPS of $1.05 on revenue of $1.94B. The consensus range is 99c-$1.13 for EPS, and revenue of $1.9B-$1.97B, according to First Call. The company lowered its FY09 guidance when it last reported earnings, expecting FY09 EPS of $2.20-$2.25, down from $2.20-$2.30, and the company anticipates coming in at low end of the range. Consensus for FY09 EPS is $2.24. McGraw-Hill also lowered its FY09 revenue estimates expecting growth down 5.5%-6.5% vs. prior view of a 4%-5% decline.

Analyst Views

In early September, the company was downgraded to Hold from Buy at Argus. The firm downgraded McGraw-Hill citing the increased risk profile in the wake of a decision by a federal judge that is allowing a common law fraud claim against its subsidiary, Standard & Poor's, to proceed. The company announced in mid October that it sold BusinessWeek to Bloomberg, though terms of the sale were not disclosed.