Last Update: 30-Apr-13 07:59 ET
McGraw Hill shares rise 3% following better than expected earnings
McGraw-Hill (MHP $54.99 +1.54) reported first quarter earnings of $0.80 per share, ex items, $0.07 better than the Capital IQ consensus of $0.73, while revenues rose 14.1% year/year to $1.18 billion versus the $1.17 billion consensus. The company reaffirmed guidance for fiscal year 2013 with EPS of $3.10-3.20 versus the $3.20 consensus. Standard & Poor's Ratings Services: Driven by strength in corporate issuance, and continued recovery in U.S. structured finance issuance, quarterly revenue increased 20% to $561 mln compared to 1Q 2012. Operating profit increased 39% to $259 million, driving a 600-plus basis point improvement in operating profit margin to 46%. Transaction revenue increased 36% to $264 mln compared to the same period last year. While total corporate and structured finance issuance decreased 10% and 19%, respectively, and public finance only contributed issuance growth of 2%, the mix of issuance was favorable. DOJ Lawsuit: On April 22nd the Company responded to the DOJ complaint with a motion to dismiss the entire complaint. The DOJ now has the opportunity to respond to our motion, and the arguments of both sides will be heard by the Judge later in 2013. Abu Dhabi and King County Cases: In a case involving claims related to investments in the Cheyne Structured Investment Vehicle that was set to go to trial in federal court in New York on May 13th, the Company has settled the case. In addition, the King County case involving claims relating to investments in the Rhinebridge Structured Investment Vehicle has been settled.
McGraw-Hill (MHP $54.99 +1.54) reported first quarter earnings of $0.80 per share, ex items, $0.07 better than the Capital IQ consensus of $0.73,