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Is a Beat in the Cards for S&P Global (SPGI) in Q4 Earnings?

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S&P Global Inc. (SPGI - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 9, before market open.

Q4 Expectations

Strength across all the segments — S&P Global Ratings (Ratings), S&P Global Market Intelligence (Market Intelligence), S&P Global Platts (Platts) and S&P Dow Jones Indices (Indices) — is likely to have driven the company’s revenues in fourth-quarter 2020. The Zacks Consensus Estimate for revenues stands at $1.75 billion, indicating growth of 1.1% from the year-ago period’s reported figure.

Segment wise,Ratings revenues are likely to have been driven by solid bond issuance, partially offset by lower bank loan rating activity.  Rise in bond issuance among U.S. corporates, global sovereigns, and U.S. public financeare likely to have boosted Transaction revenues. Market Intelligence revenues are expected to have gained from growth in Data Management Solutions, Credit Risk Solutions, and Desktop and the inclusion of 451 Research. Platts revenues might have benefited from growth in the core subscription business, partially offset by lower Global Trading Services activity. Indices revenues are likely to have been aided by gains in asset-linked fees, and data and custom subscriptions. These were partially offset by reduced exchange-traded derivative fees.

Revenue growth, productivity programs and reduced expenses from COVID-related management actions are likely to have boosted S&P Global’s fourth-quarter 2020 earnings, the Zacks Consensus Estimate for which is pegged at $2.55 per share, indicating growth of 0.8% from the year-ago period reported figure.

What Our Model Says                                                     

Our proven model predicts an earnings beat for S&P Global this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

S&P Global has an Earnings ESP of +1.91% and a Zacks Rank #3.

S&P Global Inc. Price and EPS Surprise

S&P Global Inc. Price and EPS Surprise

S&P Global Inc. price-eps-surprise | S&P Global Inc. Quote

Other Stocks to Consider

Here are a few other stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these too have the right combination of elements to beat on fourth-quarter 2020 earnings.

Kforce (KFRC - Free Report) has an Earnings ESP of +0.53% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Aptiv(APTV - Free Report) has an Earnings ESP of +7.82% and a Zacks Rank #3.

Equifax(EFX - Free Report) has an Earnings ESP of +1.44% and a Zacks Rank #3.

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