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S&P Global (SPGI) Up 4.2% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for S&P Global (SPGI - Free Report) . Shares have added about 4.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is S&P Global due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
S&P Global Beats on Q2 Earnings
S&P Global 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.
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 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, S&P Global has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, S&P Global has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
S&P Global is part of the Zacks Business - Information Services industry. Over the past month, TransUnion (TRU - Free Report) , a stock from the same industry, has gained 5.5%. The company reported its results for the quarter ended June 2024 more than a month ago.
TransUnion reported revenues of $1.04 billion in the last reported quarter, representing a year-over-year change of +7.5%. EPS of $0.99 for the same period compares with $0.86 a year ago.
For the current quarter, TransUnion is expected to post earnings of $1.01 per share, indicating a change of +11% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.2% over the last 30 days.
TransUnion has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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S&P Global (SPGI) Up 4.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for S&P Global (SPGI - Free Report) . Shares have added about 4.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is S&P Global due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
S&P Global Beats on Q2 Earnings
S&P Global 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.
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 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, S&P Global has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, S&P Global has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
S&P Global is part of the Zacks Business - Information Services industry. Over the past month, TransUnion (TRU - Free Report) , a stock from the same industry, has gained 5.5%. The company reported its results for the quarter ended June 2024 more than a month ago.
TransUnion reported revenues of $1.04 billion in the last reported quarter, representing a year-over-year change of +7.5%. EPS of $0.99 for the same period compares with $0.86 a year ago.
For the current quarter, TransUnion is expected to post earnings of $1.01 per share, indicating a change of +11% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.2% over the last 30 days.
TransUnion has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.