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S&P Global (SPGI) to Report Q2 Earnings: What's in the Offing?

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S&P Global Inc. (SPGI - Free Report) is scheduled to release its second-quarter 2024 results on Jul 30, before market open.

SPGI has a decent earnings surprise history, having surpassed the Zacks Consensus Estimate in two of the four trailing quarters, missing on one and meeting on another instance, the average earnings surprise being 3.4%.

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

Q2 Expectations

The Zacks Consensus Estimate for revenues is pegged at $3.4 billion, indicating an increase of 10.1% from the year-ago quarter’s actual. The top line is expected to have gained primarily from transaction revenues in the Ratings division and subscription revenues across the entire company.

Our estimate for Mobility revenues indicates 9.1% growth from the year-ago quarter to $402.5 million. We expect continued growth of the Mobility division through business growth in products served by new car listings and CARFAX for Life, the addition of market scan, strong underwriting volumes, and price rise. Commodity Insights' revenue estimates are pegged at $497.4 million, implying a 7.7% rise from the year-ago reported figure. Rising demand in Price Assessments and Energy, and Resources Data is anticipated to have driven this segment’s revenues.

The estimate for Ratings revenues is pegged at $866.8 million, suggesting 1.9% growth from the year-ago quarter’s actual. This segment’s revenues are expected to have been driven by a surge in transaction revenues due to growth in refinancing activity that increased bank loans and high-yield issuance.

We anticipate Indices revenues of 373.9 million, indicating 7.5% growth from the year-ago reported figure. Strong growth in asset-linked fees that benefited from higher AUM and strength in Exchange Traded derivative revenues are estimated to have positively impacted this segment’s revenues. Our estimate for Market Intelligence revenues for the second quarter of 2024 is pegged at $1.2 billion, rising 11.4% year over year. It is likely to have been caused by growth in revenues across the Data & Advisory Solutions and Enterprise Solutions.

The consensus estimate for earnings per share is pegged at $3.6, up 15.4% on a year-over-year basis. Strong margins, driven by discipline on the expense side, are anticipated to have benefited the bottom line.

We expect adjusted EBITDA for the quarter to be $1.8 billion, increasing 3.1% from the year-ago quarter’s reported number. The adjusted EBITDA margin is anticipated to be 53.7%, down from the year-ago quarter’s actual of 55.4%.

What Our Model Predicts

Our model predicts a likely earnings beat for SPGI 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 before they are reported with our Earnings ESP Filter.

SPGI has an Earnings ESP of +1.14% and a Zacks Rank of 2.

Other Stocks to Consider

Here are a few stocks from the broader Business Services sector, which, according to our model, also have the right combination of elements to beat on earnings this season.

Booz Allen Hamilton (BAH - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2024 revenues is pegged at $2.9 billion, indicating 10.1% growth from the year-ago quarter’s reported figure. For earnings, the consensus mark is pegged at $1.5 per share, suggesting a 3.4% rise from the year-ago quarter’s actual. The company beat the consensus estimate in three of the past four quarters and missed in one, with an average surprise of 12.5%.

BAH currently has an Earnings ESP of +1.95% and a Zacks Rank of 2. The company is scheduled to post its second-quarter results on Jul 26. You can see the complete list of today’s Zacks #1 Rank stocks here.

SPX Technologies, Inc. (SPXC - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2024 revenues is pegged at $490.9 million, indicating 16% growth from the year-ago quarter’s reported figure. For earnings, the consensus mark is pegged at $1.3 per share, suggesting an 18.9% rise from the year-ago quarter’s actual. The company beat the consensus estimate in three of the past four quarters and met in one, with an average surprise of 13.9%.

SPXC currently has an Earnings ESP of +1.59% and a Zacks Rank of 2. The company is scheduled to declare its second-quarter results on Aug 1.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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