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Company Profile

IHS Inc. (NYSE:IHS) is a source of information and insight in areas such as energy and power; design and supply chain; defense, risk, and security; environment, health and safety and sustainability; country and industry forecasting, and commodities, pricing, and cost. It is organized by geographies into three business segments: Americas, which includes the United States, Canada, and Latin America; EMEA, which includes Europe, the Middle East, and Africa, and Asia Pacific.

IHS Inc. is scheduled to report its second quarter earnings results on June 18, 2012, after the market close.

Technical Overview

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IHS has a market cap of $6.62 billion and is currently trading around $101.24 with a 52 week range of $67.88 to $103.25. The stock has risen 17.54% YTD. The following table provides the key financial ratios for IHS:

Key Ratio

Value

Current Ratio

0.92

PEG

3.28

P/E

51.89

Forward P/E

20.93

Profit Margin

9.24%

Return On Assets (ROA)

4.64%

Return On Equity (ROE)

9.53%

Recent News

  • On May 31, 2012, IHS released SmartPM (Smart Predictive Maintenance), the first commercially available, advanced thermo-hydraulic simulation software tool that enables oil refinery operators to better manage and reduce maintenance, avoid throughput reductions, improve energy efficiency, reduce emissions and operating costs.
  • On May 17, 2012, IHS announced an agreement with Australian technology and service provider EnVizTec to meet surging market demand for information management solutions that can help global organizations manage operational risks and enable unified strategies for Enterprise Sustainability Management (ESM).
  • One May 11, 2012, IHS announced that it has acquired XeDAR Corporation, a leading developer and provider of geospatial information products and services, for approximately $28 million, net of cash acquired.
  • On April 24, 2012, IHS announced a multi-year agreement with the U.S. government to continue providing the IHS Hazardous Material Management System™ (HMMS) as the information management solution supporting hazardous materials and waste programs at more than 100 U.S. Department of Defense (DOD) and National Aerospace and Space Administration (NASA) sites.
  • On March 29, 2012, IHS announced that it has acquired BDW Automotive GmbH, a leader in the development of information and planning systems and intelligent processing of vehicle databases for the automotive industry, for approximately $8 million.
  • On March 29, 2012, IHS announced it has been selected by Novelis, the world leader in aluminum rolling and beverage can recycling, to standardize and enrich the company's maintenance, repair and operations (MRO) materials catalog and enable MRO data governance through catalog management software.

Here's a list of recent changes to analyst ratings:

  • On June 4, 2012, Barclays upgraded IHS from EQUALWEIGHT to OVERWEIGHT and raised the price target from $100 to $115.
  • On May 8, 2012 Thomas White/Global Capital downgraded IHS from UNFAVORABLE to MOST UNFAVORABLE.
  • On May 11, 2012 Ford Equity Research upgraded IHS from SELL to HOLD.
  • On April 27, 2012 Ford Equity Research downgraded IHS from NEUTRAL to SELL.
  • On April 9, 2012 Ned Davis Research upgraded IHS from SELL to NEUTRAL.
  • On March 22, 2012, Piper Jaffray reduced IHS rating from OVERWEIGHT to NEUTRAL and maintained a $96 price target.

Analyst Guidance and Earnings History

The second quarter revenues are expected to be $383.52 million, compared to $325.12 million for the same quarter last year. Earnings per share for the second quarter are expected to be 94 cents a share, up from 83 cents a share in the year-ago period.

The average price target from analysts for IHS is $102.4 with an average rating of OVERWEIGHT

Out of the last 4 quarters, IHS has met or exceeded EPS estimates 2 times. The following chart shows the Analyst estimates history and the actual EPS results for the previous 4 quarters:

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The following chart shows the annual summary of Sales and Net income for IHS:

Sources: Data is taken from Google Finance, Yahoo Finance, Nasdaq, Finviz and investor sites.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Source: Q2 Earnings Preview: IHS Inc.