McGraw Hill Financial Posts Profit - Update

(RTTNews) - McGraw Hill Financial Inc. (MHFI) Tuesday reported a swing to profit in the fourth quarter on a marginal increase in revenues, while the prior-year period was hurt by charges related to the sale of its education publishing unit.

Moving forward, the company provided strong earnings outlook for 2014. McGraw Hill Financial shares are up 4 percent on the New York Stock Exchange.

The New York-based company posted quarterly net income of $171 million or $0.62 per share, compared with a net loss of $216 million or $0.76 per share last year.

Results for the prior-year quarter included a $404 million loss from discontinued operations related to the $2.4 billion sale of its education publishing unit to Apollo Global Management (APO).

Excluding items, McGraw Hill's adjusted earnings for the quarter were $223 million or $0.81 per share, compared with $205 million or $0.75 per share a year ago. On average, 10 analysts polled by Thomson Reuters expected earnings of $0.78 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the fourth quarter edged up to $1.25 billion from $1.23 billion in the prior year. Nine analysts had a consensus estimate $1.24 billion for the quarter.

Among segments, revenue at its key Standard & Poor's Ratings Services fell 2 percent from last year, while S&P Capital IQ revenue was up 4 percent, S&P Dow Jones Indices climbed 18 percent, and Commodities & Commercial Markets edged up 2 percent.

For fiscal year 2014, McGraw Hill Financial expects adjusted earnings of $3.75 to $3.85 per share and revenue growth in the mid-single digits. Twelve analysts on consensus, currently estimate earnings of $3.75 per share for the year, on a revenue growth of 6.3 percent.

The company's stock is trading at $77.53, up $3.14 or 4.22%, on a volume of 1.5 million shares.