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McGraw Hill Financial (MHFI) Q1 Earnings: What's in Store?

McGraw Hill Financial, Inc. MHFI is slated to report first-quarter 2016 results on Apr 26. In the last quarter, the company delivered a positive earnings surprise of 4%. Notably, the company surpassed the Zacks Consensus Estimate in each of the last four quarters with an average positive earnings surprise of 8.1%. Nonetheless, it remains to be seen if the company will be able to keep its earnings streak alive. Let’s see how things are shaping up for this announcement.

Earnings Whispers

Our proven model does not conclusively show that McGraw Hill Financial is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. McGraw Hill Financial has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.15. The company carries a Zacks Rank #4 (Sell), which when combined with ESP of 0.00% makes surprise prediction difficult.

Factors Influencing This Quarter

McGraw-Hill’s results could be negatively impacted by lower volume of debt securities issued in the capital markets. Financial distress could either reduce investor’s demand for debt securities or make issuers reluctant to issue such securities. In addition, increase in interest rates or credit spreads, may adversely affect the general level of debt issuance. In the fourth quarter, debt issuance in two of the world’s largest markets, the U.S and Europe, declined sharply. In the U.S., yield declined 41%, investment grade deteriorated 17%, public finance decreased 21% and structured finance was down 26%.

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Beacon Roofing Supply, Inc. BECN has an Earnings ESP of +33.33% and a Zacks Rank #1.

Coca-Cola Enterprises, Inc. CCE has an Earnings ESP of +2.50% and a Zacks Rank #2.

Cabela's Incorporated CAB has an Earnings ESP of +10.81% and a Zacks Rank #3.

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COCA-COLA ENTRP (CCE): Free Stock Analysis Report
 
BEACON ROOFING (BECN): Free Stock Analysis Report
 
CABELAS INC (CAB): Free Stock Analysis Report
 
MCGRAW HILL FIN (MHFI): Free Stock Analysis Report
 
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