IHS Inc. (NYSE: IHS) provides documents, decision-support tools and related services to customers in a variety of technical fields. The firm's Energy division delivers oil and gas data on exploration, development, production, and transportation activities to energy producers and oil companies. Its Engineering division provides technical specifications and standards, regulations, parts data, design guides and other information to customers in the defense, aerospace, construction, energy, electronics and automotive industries. Customers include Amgen (NASDAQ: AMGN), Boeing (NYSE: BA) and DuPont (NYSE: DD).

The company surprised the Street last week, when it reported Q2 EPS of 46 cents and revenues of $207.2 million. Analysts had been expecting 44 cents and $200.5 million. According to the CFO, the underlying subscription-based business continued to perform very well, helping to generate top-line growth, margin expansion and a record quarterly cash flow from operations. As a result, the firm was able to re-pay money borrowed at the start of Q2 for three March acquisitions. Management also guided FY08 revenues to about $833.0-$846.7 million, versus consensus of $842.80 million.

Any firm doing business with a significant science & engineering component needs quick access to organized, up-to-the-minute technical information. There is an Englewood, Colorado outfit that provides that access to some of the biggest corporations in the world.

IHS Inc. (NYSE: IHS) provides documents, decision-support tools and related services to customers in a variety of technical fields. The firm's Energy division delivers oil and gas data on exploration, development, production, and transportation activities to energy producers and oil companies. Its Engineering division provides technical specifications and standards, regulations, parts data, design guides and other information to customers in the defense, aerospace, construction, energy, electronics and automotive industries. Customers include Boeing (NYSE: BA) and DuPont (NYSE: DD) and Exxon Mobil (NYSE: XOM).

The company surprised the Street last week, when it reported Q3 EPS of 43 cents and revenues of $183.4 million. Analysts had been expecting 36 cents and $174.9 million. Management also guided FY07 revenues to about $672-$683 million, versus consensus of $666.92 million. The share price popped on the news and then began consolidating the gain in a bullish "flag" pattern. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with two "strong buys," three "buys" and two "holds." Analysts see a 19% growth rate through the next year. The IHS Price to Free Cash Flow ratio (30.89), Sales Growth rate (31.07%), EPS Growth rate (48.28%) and Net Profit Margin (11.30%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 66% of the outstanding shares. Over the past 52 weeks, the stock has traded between $30.82 and $57.64. A stop-loss of $49.25 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

Quick access to organized technical information is essential to the success of any business with a significant scientific/engineering component. An Englewood, Colorado firm provides that access to some of the biggest corporations in the world.

IHS Inc. (NYSE: IHS) provides documents, decision-support tools and related services to customers in a variety of technical fields. The firm's Energy division delivers oil and gas data on exploration, development, production, and transportation activities to energy producers and oil companies. Its Engineering division provides technical specifications and standards, regulations, parts data, design guides and other information to customers in the defense, aerospace, construction, energy, electronics and automotive industries. Customers include Amgen (NASDAQ: AMGN), Boeing (NYSE: BA), DuPont (NYSE: DD), Exxon Mobil (NYSE: XOM), General Electric (NYSE: GE), General Motors (NYSE: GM) and Lockheed Martin (NYSE: LMT).

The company surprised the Street last month, when it reported Q2 EPS of 37 cents and revenues of $154.9 million. Analysts had been expecting 34 cents and $150 million. Management also guided 2007 revenues to about $660.9-671.9 million, versus consensus of $642.66 million.