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Monday, October 26, 2009

McGraw-Hill 3Q Falls, But Tops Views

By Matt Egan

FOXBusiness

McGraw-Hill (MHP) reported a 14% decline in profits during the third quarter, which was better than Wall Street had expected, but the owner of Standard & Poor’s disclosed disappointing revenue figures.

McGraw-Hill, also one of the world’s largest textbook publishers, said it earned $1.07 last quarter, topping the Street’s estimates by two cents.

However, McGraw-Hill said its revenue fell 8.4% to $1.9 billion, narrowly missing analysts’ forecast for $1.94 billion.

The company also updated its full-year guidance, projecting EPS at the high end of its earlier view. Due to market conditions “continuing to weaken in school education and advertising,” McGraw-Hill now sees revenue falling about 7%, which is worse than its earlier forecast for a decline of 5.5% to 6.5%.

Shares of McGraw-Hill, which have soared almost 30% over the past month, slipped nearly 2% in the pre-market trading, to $29.96.

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