Jane’s Defence Weekly publisher, the IHS Inc., posted its quarterly profit that is higher than expectations, helped by the reduced operating expenses.
The company’s shares jumped 11.6% to 122.92 dollars in the early trading. The provider of business and information services also said its acquisition-related costs dropped 884,000 dollars from 5.4 million in the quarter ending December 30.
Chief Executive Officer (CEO) Scott Key said the company took a pause after acquiring R.L. Polk & Co in July 2013, has de-levered and is now acquiring again.
The company has disclosed its plans on acquiring businesses from the maritime and trade as well as the chemicals and technology industries. Its current ventures include iSuppli, a technology market research company, and the Cambridge Energy Research Associates.
IHS’ net income rose to 60.1 million dollars, equivalent to 87 cents for every share during the quarter ending November 30, compared to the 40.8 million dollars or 60 cents last year.
Earnings, excluding items were at 1.68 dollars per share, while revenue jumped 4% to 582.3 million dollars. The overall organic revenue increased 4%, helped by maritime and trade, and automotive sectors.
Total subscription revenue increased 6%, while analysts had an average forecast of 1.55 dollars per share with 585.7 million dollars in revenue.
The CEO said IHS will continually grow in the next years to come, while a 6-7% growth in organic revenue is expected and a 1 percentage point expansion in the forecast margins.