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S&P Global (SPGI) Q2 Earnings & Revenues Beat Estimates

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S&P Global Inc. (SPGI - Free Report) has reported impressive second-quarter results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.

SPGI’s adjusted EPS (excluding 82 cents from non-recurring items) of $4.04 surpassed the Zacks Consensus Estimate by 10.1% and increased 29.5% year over year. Revenues of $3.5 billion beat the consensus estimate by 3.4% and improved 14.5% year over year.

The SPGI stock has gained 24.2% over the past year, outperforming the 19.2% rally of the industry it belongs to and 19.3% growth of the Zacks S&P 500 Composite.

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

Quarterly Details

Revenues from Marketing Intelligence were $1.2 billion, which increased 7% from the year-ago reported figure and met our estimate. Ratings revenues grew 33% to $1.1 billion and surpassed our estimate of $866.8 million. Revenues from Commodity Insights were $516 million, up 12% from the year-ago quarter and beating our estimate of $497.4 million.

Revenues from the Mobility and Indices segment saw year-over-year increases of 8% and 12% to $400 million and $389 million, respectively. Mobility revenues missed our estimate of $402.5 million, while Indices revenues outpaced our estimate of $373.9 million.

Adjusted operating profit was $1.8 billion, up 26% on a year-over-year basis. The adjusted operating profit margin was 50.7%, 450 basis points more than the year-ago reported figure.

Balance Sheet & Cash Flow

S&P Global exited the second quarter with cash, cash equivalents and restricted cash of $2 billion compared with $1.5 billion at the end of the prior quarter. The long-term debt was $11.4 billion, flat with the previous quarter.

SPGI generated $1.6 billion in cash from operating activities in the quarter. Capital expenditure was $32 million. The free cash flow was $613 million. The company returned $286 million in the form of dividends.

2024 Outlook

For 2024, the company raised its adjusted EPS guidance to $14.35-$14.60 compared with $13.85-$14.10 mentioned previously. The Zacks Consensus Estimate for the same is pegged at $14.30, lower than the company’s guided range. The revenue growth guidance is raised to 8-10% from the 6-8% stated earlier. The company reduced the guidance for capital expenditure to $180-$190 million from the $185-$195 million mentioned previously.

Currently, S&P Global carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

IQVIA Holdings Analytics Inc. (IQV - Free Report) reported impressive second-quarter 2024 results.

IQV’s adjusted earnings (excluding 67 cents from non-recurring items) were $2.6 per share, outpacing the Zacks Consensus Estimate by 2.3% and increasing 2.4% on a year-over-year basis. Total revenues of $3.8 billion surpassed the consensus estimate marginally and rose 2.3% from the year-ago quarter.

Republic Services, Inc. (RSG - Free Report) reported an impressive second-quarter 2024 results.

RSG’s earnings per share (excluding 1 cent from non-recurring items) of $1.6 beat the Zacks Consensus Estimate by 5.2% and increased 14.2% from the year-ago quarter. Revenues of $4 billion beat the consensus mark by a slight margin and gained 8.6% year over year.


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