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S&P Global Inc. (SPGI - Free Report) reported better-than-expected fourth-quarter 2021 results.
Adjusted earnings per share of $3.15 beat the consensus mark by 0.6% and improved 16% year over year on the back of solid revenue growth and productivity improvements. Revenues of $2.09 billion beat the consensus estimate by 2.1% and improved 12% year over year, backed by strength across every segment.
Over the past year, shares of S&P Global have gained 21.9% against 1.5% decline of the industry it belongs to. The Zacks S&P 500 composite rose 14.7% in the said time frame.
Image Source: Zacks Investment Research
Let’s check out the numbers in detail.
Segmental Revenues
Ratings revenues increased 12% year over year to $989 million. Transaction revenues grew 18% year over year to $504 million, owing to strength in investment-grade corporate bonds, bank loans and structured products. Non-transaction revenues improved 7% year over year to $485 million owing to fees associated with surveillance, CRISIL and new-entity credit ratings.
Market Intelligence revenues were up 8% year over year to $584 million, primarily driven by growth in Data Management Solutions, Credit Risk Solutions and Desktop.
Platts revenues rose 12% year over year to $249 million, backed by growth in core subscription business and increased Global Trading Services activity.
S&P Dow Jones Indices revenues grew 18% to $303 million, backed by strength across asset-linked fees and exchange-traded derivative activity.
Operating Results
Adjusted operating profit margin grew 18% year over year to $570 million. Adjusted operating profit margin increased 300 basis points (bps) to 57.6%.
Segment wise, Ratings’ adjusted operating profit improved 17% to $645 million while adjusted operating profit margin increased 160 bps to 63.4%.
Market Intelligence’s adjusted operating profit increased 15% to $191 million and adjusted operating profit margin improved 200 bps to 32.7%.
Platts’ adjusted operating profit increased 8% to $125 million and adjusted operating profit margin decreased 160 bps to 50.1%.
S&P Dow Jones’ adjusted operating profit increased 13% to $199 million. Adjusted operating profit margin decreased 280 bps to 65.7%.
S&P Global exited fourth-quarter 2021 with cash, cash equivalents and restricted cash of $6.51 billion compared with $5.91 billion at the end of the prior quarter. Long-term debt was $4.11 billion, flat sequentially.
The company generated $940 million of cash from operating activities in the reported quarter. Capital expenditures were $2 million. Free cash flow was $846 million.
S&P Global did not repurchase any share during 2021 due to the pending merger with IHS Markit.
Robert Half International (RHI - Free Report) delivered impressive fourth-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
Robert Half’s quarterly earnings of $1.51 per share beat the consensus mark by 5.6% and rose 79.8% year over year.
Robert Half’s revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis.
ADP’s adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
ADP’s total revenues of $4.03 billion beat the consensus mark by 1.1% and improved 9% year over year on a reported basis as well as on an organic constant-currency basis.
Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same.
Rollins’ adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.
Rollins’ revenues of $600.3 million beat the consensus mark by 3.3% and improved 11.9% year over year.
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S&P Global (SPGI) Q4 Earnings & Revenues Beat Mark, Rise Y/Y
S&P Global Inc. (SPGI - Free Report) reported better-than-expected fourth-quarter 2021 results.
Adjusted earnings per share of $3.15 beat the consensus mark by 0.6% and improved 16% year over year on the back of solid revenue growth and productivity improvements. Revenues of $2.09 billion beat the consensus estimate by 2.1% and improved 12% year over year, backed by strength across every segment.
Over the past year, shares of S&P Global have gained 21.9% against 1.5% decline of the industry it belongs to. The Zacks S&P 500 composite rose 14.7% in the said time frame.
Let’s check out the numbers in detail.
Segmental Revenues
Ratings revenues increased 12% year over year to $989 million. Transaction revenues grew 18% year over year to $504 million, owing to strength in investment-grade corporate bonds, bank loans and structured products. Non-transaction revenues improved 7% year over year to $485 million owing to fees associated with surveillance, CRISIL and new-entity credit ratings.
Market Intelligence revenues were up 8% year over year to $584 million, primarily driven by growth in Data Management Solutions, Credit Risk Solutions and Desktop.
Platts revenues rose 12% year over year to $249 million, backed by growth in core subscription business and increased Global Trading Services activity.
S&P Dow Jones Indices revenues grew 18% to $303 million, backed by strength across asset-linked fees and exchange-traded derivative activity.
Operating Results
Adjusted operating profit margin grew 18% year over year to $570 million. Adjusted operating profit margin increased 300 basis points (bps) to 57.6%.
Segment wise, Ratings’ adjusted operating profit improved 17% to $645 million while adjusted operating profit margin increased 160 bps to 63.4%.
Market Intelligence’s adjusted operating profit increased 15% to $191 million and adjusted operating profit margin improved 200 bps to 32.7%.
Platts’ adjusted operating profit increased 8% to $125 million and adjusted operating profit margin decreased 160 bps to 50.1%.
S&P Dow Jones’ adjusted operating profit increased 13% to $199 million. Adjusted operating profit margin decreased 280 bps to 65.7%.
S&P Global Inc. Price, Consensus and EPS Surprise
S&P Global Inc. price-consensus-eps-surprise-chart | S&P Global Inc. Quote
Balance Sheet and Cash Flow
S&P Global exited fourth-quarter 2021 with cash, cash equivalents and restricted cash of $6.51 billion compared with $5.91 billion at the end of the prior quarter. Long-term debt was $4.11 billion, flat sequentially.
The company generated $940 million of cash from operating activities in the reported quarter. Capital expenditures were $2 million. Free cash flow was $846 million.
S&P Global did not repurchase any share during 2021 due to the pending merger with IHS Markit.
Currently, S&P Global carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Robert Half International (RHI - Free Report) delivered impressive fourth-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
Robert Half’s quarterly earnings of $1.51 per share beat the consensus mark by 5.6% and rose 79.8% year over year.
Robert Half’s revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis.
Automatic Data Processing (ADP - Free Report) reported better-than-expected second-quarter fiscal 2022 results.
ADP’s adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
ADP’s total revenues of $4.03 billion beat the consensus mark by 1.1% and improved 9% year over year on a reported basis as well as on an organic constant-currency basis.
Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same.
Rollins’ adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.
Rollins’ revenues of $600.3 million beat the consensus mark by 3.3% and improved 11.9% year over year.