McGraw Hill Profit Hit By Legal Charges

McGraw Hill Financial Inc. said Thursday it had a net loss of $846 million, or $3.11 a share, after earnings of $171 million, or 62 cents a share, in the year-earlier period, weighed down by the costs of a settlement with the U.S. government. The owner of Standard & Poor's Ratings Service recently reached a settlement with the U.S. Department of Justice and state attorneys general to resolve charges it misrated mortgage-related securities in the run-up to the 2008 financial crisis. Excluding those charges and costs, the company had EPS of 95 cents, topping the FactSet consensus of 90 cents. Revenue rose to $1.29 billion from $1.21 billion, also ahead of the FactSet consensus of $1.281 billion. The company said it is raising its quarterly dividend to 33 cents a share from 30 cents, with the new dividend to be paid on March 11. The company said it expects 2015 EPS of $4.35 to $4.45 and revenue growth in the mid single digits. Shares were not yet active in premarket trade, but are up 8.5% in the last three months, while the S&P 500 is up 1.5%.