ENGLEWOOD, Colo. (AP) — Business information and analytics firm IHS said Thursday that its second-quarter net income fell 3 percent as operating expenses climbed and it dealt with higher acquisition-related costs. Its adjusted profit beat Wall Street's view.
Separately, IHS Inc. also announced that it is buying PFC Energy, a consulting firm that provides analytical products and services for the oil and gas industry. Terms were not disclosed,
The Englewood, Colo., company said that it earned $42.9 million, or 65 cents per share, for the three months ended May 31, down from $44.2 million, or 66 cents per share, a year ago.
Total operating expenses increased to $356.6 million from $326.7 million. Acquisition-related costs climbed to $1.7 million from $501,000.
Stripping out acquisition-related costs, restructuring charges and other items, earnings were $1.04 per share.
Analysts expected earnings of $1.03 per share, according to a FactSet poll.
Revenue rose 8 percent to $418.1 million from $387.2 million as both subscription and non-subscription revenue increased. Wall Street was looking for $422.9 million in revenue.
Revenue for the Americas and Asia-Pacific region climbed, while revenue for Europe, the Middle East and Africa dipped slightly.
IHS anticipates full-year adjusted earnings of $4.23 to $4.43 per share on revenue in a range of $1.66 billion to $1.73 billion. Analysts forecast earnings of $4.35 per share on revenue of $1.68 billion.
IHS said that the deal for PFC Energy will enhance its energy offerings and strengthen its presence in North America, Europe, the Asia Pacific region and the Middle East.
Earlier this month IHS said that it was buying R.L. Polk & Co., owner of the Carfax service, for $1.4 billion.
IHS shares finished at $107.80 on Wednesday. They have traded in a 52-week range of $83.02 to $118.93 over the past year.