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S&P Global (SPGI) Gains From Acquisitions Amid Rising Expenses
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S&P Global (SPGI - Free Report) has had an impressive run over the past year, wherein its stock has gained 19.5%, outperforming the 17.4% rally of the industry it belongs to.
SPGI reported impressive first-quarter results. Its adjusted EPS (excluding 85 cents from non-recurring items) of $4 surpassed the Zacks Consensus Estimate by 9% and increased 27.3% year over year. Revenues of $3.5 billion beat the consensus estimate by 2.9% and improved 10.5% year over year.
S&P Global is well-poised to gain from the growing demand for business information services. The increasing data volume from private and government organizations has led to a higher for improved enterprise-wide financial performance visibility. The industry is capitalizing on the rising demand for risk mitigation. Accurate market and financial information is essential for risk mitigation, driving the demand for business information services.
S&P Global pursues growth through strategic acquisitions, with a focus on innovation, content expansion and product introduction. In 2023, the company acquired Market Scan Information Systems, Inc. and ChartIQ, which enhance mobility services and strengthen S&P Global Market Intelligence, respectively.
We are impressed with S&P Global’s strategy to reward its shareholders through share repurchases and dividend payments. In 2023, S&P Global paid out $1.1 billion as dividends and $3.3 billion as repurchases. In 2022, S&P Global paid out $1 billion as dividends and $12 billion as repurchases. In 2021, S&P Global returned $743 million to shareholders in the form of dividend payments. These actions not only instill investor confidence but also positively impact the bottom line.
S&P Global is witnessing a rise in expenses due to investments in ongoing productivity programs, higher compensation costs driven by investments in growth initiatives, and completion of acquisitions and higher incentive costs. Total expenses rose 3.4% year over year in 2023. Hence, the company’s bottom line is expected to remain under pressure, going forward.
Zacks Rank & Stocks to Consider
S&P Global currently carries a Zacks Rank #3 (Hold).
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S&P Global (SPGI) Gains From Acquisitions Amid Rising Expenses
S&P Global (SPGI - Free Report) has had an impressive run over the past year, wherein its stock has gained 19.5%, outperforming the 17.4% rally of the industry it belongs to.
SPGI reported impressive first-quarter results. Its adjusted EPS (excluding 85 cents from non-recurring items) of $4 surpassed the Zacks Consensus Estimate by 9% and increased 27.3% year over year. Revenues of $3.5 billion beat the consensus estimate by 2.9% and improved 10.5% year over year.
S&P Global Inc. Revenue (TTM)
S&P Global Inc. revenue-ttm | S&P Global Inc. Quote
How Is SPGI Doing?
S&P Global is well-poised to gain from the growing demand for business information services. The increasing data volume from private and government organizations has led to a higher for improved enterprise-wide financial performance visibility. The industry is capitalizing on the rising demand for risk mitigation. Accurate market and financial information is essential for risk mitigation, driving the demand for business information services.
S&P Global pursues growth through strategic acquisitions, with a focus on innovation, content expansion and product introduction. In 2023, the company acquired Market Scan Information Systems, Inc. and ChartIQ, which enhance mobility services and strengthen S&P Global Market Intelligence, respectively.
We are impressed with S&P Global’s strategy to reward its shareholders through share repurchases and dividend payments. In 2023, S&P Global paid out $1.1 billion as dividends and $3.3 billion as repurchases. In 2022, S&P Global paid out $1 billion as dividends and $12 billion as repurchases. In 2021, S&P Global returned $743 million to shareholders in the form of dividend payments. These actions not only instill investor confidence but also positively impact the bottom line.
S&P Global is witnessing a rise in expenses due to investments in ongoing productivity programs, higher compensation costs driven by investments in growth initiatives, and completion of acquisitions and higher incentive costs. Total expenses rose 3.4% year over year in 2023. Hence, the company’s bottom line is expected to remain under pressure, going forward.
Zacks Rank & Stocks to Consider
S&P Global currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are AppLovin (APP - Free Report) and WEX (WEX - Free Report) .
AppLovin flaunts a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
APP has a long-term earnings growth expectation of 20%. It delivered a trailing four-quarter earnings surprise of 60.9%, on average.
WEX currently has a Zacks Rank of 2 (Buy). It has a long-term earnings growth expectation of 12.4%.
WEX delivered a trailing four-quarter earnings surprise of 3.3%, on average.