Yahoo Finance S&P Global (SPGI) Beats Q3 Earnings and Revenue Estimates
S&P Global Inc. SPGI reported impressive third-quarter results, wherein earnings and revenues beat the Zacks Consensus Estimate.
Adjusted earnings per share (EPS) (excluding 88 cents from non-recurring items) of $3.21 rose 9.6% year over year and beat the Zacks Consensus Estimate by 5.3%. Revenues of $3.08 billion surpassed the consensus estimate by 2% and improved 8% year over year, backed by strong performances in all divisions.
Segmental Revenues
Revenues from Marketing Intelligence were $1.1 billion, up 8% from the year-ago figure and surpassed our estimate by 3.8%. Ratings revenues grew 20% to $819 million and exceeded our estimate by 1.7%. Revenues from Commodity Insights improved 11%, thus taking the figure to $479 million and beating our estimate by 12.7%.
Revenues from Mobility and Indices segment saw an uptick of 10% and 6%, thus amounting to $379 million and $354 million, respectively. Mobility revenues missed our estimated $383.2 million while Indices revenues surpassed our estimated $341.3 million.
S&P Global Inc. Price, Consensus and EPS Surprise
S&P Global Inc. price-consensus-eps-surprise-chart | S&P Global Inc. Quote
Operating Results
Segment-wise, Market Intelligence’s adjusted operating profit increased 6% to $366 million and adjusted pro-forma operating profit margin plunged 90 bps to 33%. Ratings’ adjusted operating profit increased 22% to $464 million and adjusted operating profit margin was 57%, down from the year-ago figure of 55.9%.
Commodity Insights’ adjusted operating profit improved 17% to $232 million and adjusted operating profit margin was 48%, compared to 45.8% reported a year ago. S&P Dow Jones Indices’ adjusted operating profit fell 5% to $246 million. However, adjusted operating profit margin decreased 130 bps to 69%.
Adjusted operating profit was $1.45 billion and adjusted operating profit margin was 47% for the reported quarter, 100 basis points more than the year-ago reported figure.
Balance Sheet and Cash Flow
S&P Global exited third-quarter 2023 with cash, cash equivalents and restricted cash of $1.65 billion compared with $1.56 billion at the end of the prior quarter. Long-term debt was $11.41 billion compared with $10.68 billion at the end of the previous quarter.
SPGI generated $1.01 billion in cash from operating activities in the reported quarter. Capital expenditures were $36 million. Free cash flow was $906 million. The company returned $278 million in the form of dividends.
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.
Updated 2023 Outlook
Adjusted EPS is expected to be in the range of $12.5-$12.6, up from the prior range of $12.35-$12.55. The Zacks Consensus Estimate of EPS of $12.47 lies below the guided range. Revenue growth is expected to be 4.5-5.5%, revised from 4-6%.
Non-GAAP adjusted free cash flow (excluding certain items) is expected to be between $4.2 billion and $4.3 billion. Capital expenditures are expected to be around $145 million.
Earnings Snapshot
Fiserv, Inc.FI reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
FI’s adjusted EPS (excluding 40 cents from non-recurring items) of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and increased 8.2% year over year.
Organic revenue growth was 12% in the quarter, driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.
Waste Management Inc. WMreported mixed third-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate while revenues missed the same.
WM’s Adjusted EPS of $1.63 surpassed the Zacks Consensus Estimate by 1.2% and improved 4.5% year over year. Total revenues of $5.2 billion missed the consensus estimate by 1.2% but increased 2.4% year over year.
Verisk Analytics Inc. VRSK reported impressive third-quarter 2023 results wherein earnings and revenues beat the respective estimates.
Adjusted earnings (excluding 23 cents from non-recurring items) were $1.52 per share, beating the Zacks Consensus Estimate and increasing 4.1% from the year-ago reported figure. Such a beat was supported by strong growth in underwriting data solutions, life insurance and extreme events solutions.
VRSK’s total revenues of $677.6 million surpassed the consensus estimate by 2.3% but decreased 9.1% from the year-ago figure. The reduced top line can be correlated to the sale of the company’s environmental health and safety business and Financial Services segment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Waste Management, Inc. (WM) : Free Stock Analysis Report
Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report
Fiserv, Inc. (FI) : Free Stock Analysis Report
S&P Global Inc. (SPGI) : Free Stock Analysis Report
