Summary
This 8-K filing from The McGraw-Hill Companies, Inc. (now S&P Global Inc.) announced on September 18, 2007, provides updated financial guidance. The company reaffirms its expectation to achieve double-digit earnings growth for the full year 2007. This guidance is presented on a non-GAAP basis, excluding specific one-time charges and gains from prior periods to offer a clearer view of ongoing operational performance. Investors should note that the company explicitly details the items excluded from their non-GAAP earnings growth forecast. These include a charge related to the elimination of a stock option program in 2006, a restructuring charge from 2006, and a gain from the sale of a mutual fund data business in early 2007. The company asserts that excluding these items provides more useful information to investors due to their unusual nature, and that GAAP-based earnings growth would appear even stronger when these items are included.
Key Highlights
- 1The McGraw-Hill Companies reaffirms expectation of double-digit earnings growth for 2007.
- 2Guidance provided at the Goldman Sachs’ Communacopia XVI 2007 Conference.
- 3Non-GAAP earnings growth forecast excludes a $0.04 charge for stock option program elimination (2006).
- 4Non-GAAP earnings growth forecast excludes a $0.06 restructuring charge (2006).
- 5Non-GAAP earnings growth forecast excludes a $0.03 gain from the sale of a mutual fund data business (Q1 2007).
- 6Management believes non-GAAP measures offer more useful investor insights due to the unusual nature of excluded items.
- 7GAAP-based earnings growth would be stronger if excluded items were included.