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Is a Beat in the Cards for S&P Global (SPGI) in Q1 Earnings?

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S&P Global Inc. (SPGI - Free Report) is scheduled to release first-quarter 2021 results on Apr 29, before market open.

Q1 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 first-quarter 2021. The Zacks Consensus Estimate for revenues stands at $1.96 billion, indicating growth of 9.8% from the year-ago period’s reported figure.

Segment wise, Ratings revenues are likely to have been driven by strength across both non-transaction and transaction revenues. Non-transaction revenues are likely to have benefited from increased activity associated with surveillance, frequent issuer programs, Rating Evaluation Service and new entity ratings, and revenues from the acquisitions of Greenwich Associates by CRISIL and the ESG Ratings Business from RobecoSAM. Transaction revenues might have been aided by rise in bank loan ratings revenues. Market Intelligence revenues are expected to have gained from growth in Data Management Solutions, Credit Risk Services, and Desktop. Platts revenues might have benefited from growth in the core subscription business. Indices revenues are likely to have been aided by gains in asset-linked fees.

Revenue growth, productivity programs, lower effective tax rate and decline in the average shares outstanding are likely to have boosted S&P Global’s first-quarter 2021 earnings, the Zacks Consensus Estimate for which is pegged at $3.13 per share, indicating growth of 14.7% 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 +1.49% 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 first-quarter 2021 earnings.

BGSF (BGSF - Free Report) has an Earnings ESP of +33.33% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Avis Budget(CAR - Free Report) has an Earnings ESP of +15.22% and a Zacks Rank #3.

Fiserv has an Earnings ESP of +0.56% and a Zacks Rank #3.

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