NEW YORK (TheStreet) -- IHS (IHS) shares are down 9.08% to $108.19 in early market trading on Tuesday after the global information company reported its first quarter earnings results before the opening bell today.
The Englewood, CO-based company reported first quarter net income of $39.5 million, or $1.36 per diluted share when adjusted for one time gains, on revenue of $546.3 million. Analysts on average were expecting the company to report earnings of $1.37 per share on revenue of $555 million.
The company, which gets about 40% of its revenue from energy companies, according to Reuters, also cut its full year earnings forecast.
IHS now expects to earn between $5.77 and $5.97 per share, down from its previous guidance of between $6.10 and $6.30 per share. Revenue expectations are between $2.27 billion and $2.31 billion.
Analysts are expecting the company to earn $6.18 per share on revenue of $2.36 billion.
Separately, TheStreet Ratings team rates IHS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate IHS INC (IHS) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: IHS Ratings Report