climbed to a 52-week high Thursday after the publisher reported a better-than-expected third-quarter profit and raised its full-year earnings target.
The company posted income of $382.3 million, or $1.06 a share, up from $381.3 million, or $1 a share, a year earlier. The earnings per share for the latest period included 3 cents in restructuring charges and 3 cents from stock-options costs.
Analysts polled by Thomson First Call had an average estimate for earnings of $1 a share.
"Record results at Financial Services and stringent cost management in the face of a softer education market this year were key factors in our third quarter," said Harold McGraw III, chairman, president and chief executive, in a statement.
The company, owner of Standard & Poor's,
and J.D. Power & Associates, said revenue rose 0.8% to $1.99 billion from $1.98 billion. The top line was slightly shy of analysts' target of $2.03 billion.
Revenue in McGraw-Hill's education segment declined 6.3% to $1.1 billion, weighed down by a 12% decline in revenue from its school education group. The financial services segment, which includes S&P, recorded an 11% revenue rise to $675.1 million, as growth in the debt and equity markets helped boost results.
Within media, revenue climbed 8% to $247.3 million. That included a 9.9% rise in its business-to-business group, which includes J.D. Power and
, ad pages rose 7.6%.
For the full year, McGraw-Hill raised its earnings forecast to $2.53 to $2.55 a share, excluding charges. The company previously projected earnings of $2.44 to $2.49 a share.
Analysts, on average, predict earnings per share of $2.41 for 2006.
Shares of McGraw-Hill recently were up $2.53, or 4.3%, to $61.56. Earlier, the shares hit a 52-week intraday high of $62.74, surpassing the previous high of $59.57 set in March.