IHS Holding Limited (NYSE:IHS) Earnings Preview: Q1 2025 Insights

• Earnings per share expected at $0.17 with projected revenue of approximately $409 million.
• Positive outlook with earnings estimates revised upward by 21.4%, indicating a significant increase of 342.9% compared to the previous year.
• Despite a challenging earnings surprise history, IHS delivered a remarkable earnings surprise of 812.5% in the most recent quarter.

IHS Holding Limited (NYSE:IHS) is set to release its first-quarter 2025 earnings on May 20, 2025. The company, known for its communication infrastructure solutions, is expected to report earnings per share of $0.17, with projected revenue of approximately $409 million. IHS operates in a competitive market, providing essential services like fiber, Distributed Antenna Systems, and data centers.

The Zacks Consensus Estimate anticipates earnings of 17 cents per share, with revenues projected at $421.3 million. Over the past 60 days, earnings estimates have been revised upward by 21.4%, indicating a significant increase of 342.9% compared to the previous year. This suggests a positive outlook for IHS, driven by strong demand for high-speed, reliable connectivity.

Despite the optimistic projections, IHS has a challenging earnings surprise history. The company has exceeded the Zacks Consensus Estimate only once in the last four quarters, with an average negative surprise of 46.6%. However, in the most recent quarter, IHS delivered a remarkable earnings surprise of 812.5%, showcasing its potential for significant performance improvements.

IHS is capitalizing on the growing demand for communication infrastructure, particularly in emerging markets like Latin America and Africa. The surge in mobile adoption and high-bandwidth applications in these regions are key factors contributing to the company's positive outlook. IHS's focus on new revenue streams, such as colocations and lease amendments, is expected to drive future growth.

Financially, IHS has a price-to-sales ratio of approximately 1.22, indicating the market's valuation of its revenue. The enterprise value to sales ratio stands at about 3.16, reflecting the company's total valuation in relation to its sales. However, the negative debt-to-equity ratio of about -8.58 may suggest financial leverage concerns, which investors should monitor closely.