McGraw Hill Financial (MHFI) Stock Closed Higher on Earnings Beat, Raised Guidance

NEW YORK (TheStreet) -- McGraw Hill Financial  (MHFI) stock closed higher by 6.03% to $97.71 on Tuesday, after the company reported its 2015 third quarter financial results and upped its full-year earnings guidance before the market open today.

The research and analytics company posted earnings of $1.19 per share for the most recent quarter, up by 16% from the year ago period. 

Revenue rose by 5% year over year to $1.32 billion, from $1.26 billion for the 2014 third quarter.

Analysts surveyed by Thomson Reuters had forecast for earnings of $1.06 per share on $1.32 billion in revenue.

McGraw Hill raised its full-year 2015 adjusted earnings forecast to a range between $4.45 per share and $4.50 per share from a prior forecast between $4.35 per share and $4.45 per share.

"The performance in the quarter demonstrates the balance across the portfolio as the company continued to deliver solid revenue growth, margin expansion and adjusted EPS growth during the third quarter despite a significant decline in global bond issuance," CEO Douglas Peterson said in a statement. 

Last week, McGraw Hill announced it is exploring a sale of its marketing information business J.D. Power, which it estimates has annual revenues nearing $350 million in 2016.

Separately, TheStreet Ratings team rates MCGRAW HILL FINANCIAL as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

We rate MCGRAW HILL FINANCIAL (MHFI) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and generally higher debt management risk.

You can view the full analysis from the report here: MHFI

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