McGraw-Hill 1Q net income surges
McGraw-Hill posts big jump in 1st-qtr net income as financial side drives growth
NEW YORK (AP) -- McGraw-Hill's net income surged during the first quarter with the sale of its education business complete, as the financial business drove revenue and earnings growth.
The New York financial information provider earned $735 million, or $2.59 per share, up from $123 million, or 43 cents per share, in the same quarter of 2012.
Excluding the gain on the sale of its education business, along with costs related to the sale and legal settlements, The McGraw-Hill Cos. posted an adjusted profit from continuing operations of 80 cents per share, easily outpacing Wall Street predictions.
Revenue rose 14 percent to $1.18 billion, also edging out analyst projections, according to a poll by FactSet.
In March, the company completed the sale of its textbook and e-learning publishing division for $2.4 billion in cash. McGraw-Hill will be renamed McGraw Hill Financial, pending a shareholder vote set for Wednesday.
Revenue at the company's Standard & Poor's Ratings Services increased 20 percent during the first quarter to $561 million.
McGraw-Hill on Tuesday backed its previous full-year profit prediction of $3.10 to $3.20 per share. Analysts expect $3.20 per share.
Shares rose 17 cents to $53.62 in morning trading.
