McGraw-Hill Cos.' (MHP) first-quarter profit rose 2.5%, driven by gains in its commodities and commercial business and indices segment, though revenue in its education business continued to fall.
The company's adjusted per-share earnings were above analyst expectations, as revenue also slightly topped Wall Street's view.
McGraw-Hill last year revealed it would split itself into two standalone companies, with one focused on its struggling education business and another--now dubbed McGraw-Hill Financial--focused on its markets businesses.
The company is in the midst of trimming costs by cutting staff in the education business and revamping its retirement benefits, among other moves. McGraw-Hill earlier this month acquired QuantHouse, a provider of market-data and systematic trading technology, and in February bought R2 Financial Technologies, which provides risk and scenario-based analytics for traders and other financial customers.
McGraw-Hill reported a profit of $123 million, or 43 cents a share, up from $120 million, or 39 cents a share, a year earlier. Excluding one-time items, per-share earnings were 51 cents in the latest period.
Revenue rose 5.6% to $1.33 billion. Analysts polled by Thomson Reuters had expected earnings of 48 cents a share on revenue of $1.32 billion.
Expenses rose 6.2%.
The S&P ratings segment's revenue rose 5.2% while the S&P Capital IQ/S&P Indices segment's revenue jumped 9%. Commodities and commercial segment revenue was up 13%. Revenue in the education unit slipped 2.3%.
Shares of the company, which affirmed its full-year view, closed at $17.95 Monday and were inactive premarket. The stock is up 9.2% since the start of the year.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287; [email protected]