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Etana, check out IHS's SEC filing 8-k\a for 7\9\97, they bought six companies in '96 many of which were not profitable. They accounted for them as if the purchases were done 12\31\95, so IHS showed a loss in Value Line for one quarter. S&P apparently showed a loss for the entire year, but Value line only for the third quarter of '96, because they don't count one time expenses against operating earnings. (Do I have this right, someone?) Anyway, S&P and Value line account for eps differently. So far, from this data, I think you can throw out the eps decline in '96 as an outlier, unless it turns out these were bad acquisitions. First Call consensus estimates still put IHS future revenue and eps growth at about 17%. What I don't like so far about IHS is their huge amount of debt, and the fact their Pre-tax income on revenues is trending down. But that is most likely because of their extremely aggressive acquisition schedule. From '91 to '93 the ptp went up nicely, when these companies have been fully absorbed, who's to say it won't continue? Interesting stuff. |
