The Dividend Daily

Publishing giant The McGraw-Hill Companies, Inc. (MHP) said Monday that its third quarter profit and revenue fell from last year, sending its shares lower.

The New York-based company reported third quarter net income of $336.1 million, or $1.07 per share, down 14% from $390 million, or $1.23 per share, in the year-ago period. Revenue fell 8% from last year, to $1.9 billion.

On average, Wall Street analysts expected a lower profit of $1.05 per share.

Looking ahead, the company said it expects its full-year 2009 earnings to be at the top end of its $2.20 to $2.25 per-share forecast. On average, analysts are looking for $2.24 per share.

McGraw-Hill shares fell 53 cents, or -1.7%, in premarket trading Monday.

The Bottom Line
We have avoided shares of MHP since our early June coverage began last year, when shares were trading at $44.36 at the time. The company has a dividend yield of 2.95%, based on Friday’s closing stock price of $30.49. The stock has technical support in the $24-$26 price area. If the shares can firm up, we see overhead resistance around the $34 price level. We would remain on the sidelines for now.

The McGraw-Hill Companies, Inc. (MHP) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

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