S&P Global Q3 Earnings & Revenues Beat Estimates, Increase Y/Y

S&P Global Inc. SPGI has reported impressive third-quarter 2024 results, wherein earnings and revenues outpaced the Zacks Consensus Estimate.

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SPGI’s adjusted EPS of $3.9 surpassed the Zacks Consensus Estimate by 6.9% and gained 21.2% year over year. Revenues of $3.6 billion beat the consensus estimate by 4% and grew 16.2% year over year.

The SPGI stock has gained 23.5% over the past six months, outperforming the 22.9% rally of its industry and 15.5% growth of the Zacks S&P 500 Composite.

Six Months Price Performance

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S&P Global’s Quarterly Details

Ratings revenues in the third quarter of 2024 increased 36% to $1.1 billion and outpaced our estimate of $849.2 million. Revenues from the Mobility and Indices segment saw year-over-year increases of 9% and 18% to $412 million and $416 million, respectively. Mobility revenues met our estimate, while Indices revenues surpassed the same of $383.6 million.

Revenues from Commodity Insights were $522 million, up 9% from the year-ago quarter and outpacing our expectation of $517.2 million. Revenues from Marketing Intelligence were $1.2 billion, which grew 6% from the year-ago reported figure and met our estimate.

Adjusted operating profit was $1.7 billion, increasing 20% on a year-over-year basis. The adjusted operating profit margin was 48.8%, 180 basis points more than the year-ago reported figure.

Balance Sheet & Cash Flow of SPGI

S&P Global exited the third quarter of 2024 with cash, cash equivalents and restricted cash of $1.7 billion compared with $2 billion at the end of the preceding quarter. The long-term debt was $11.4 billion, flat with the second quarter of 2024.

SPGI generated $1.4 billion in cash from operating activities in the quarter. Capital expenditure was $35 million. The free cash flow was $1.3 million. The company returned $282 million in the form of dividends.

S&P Global’s 2024 Outlook

The company raised its adjusted EPS guidance to $15.10-$15.30 for 2024 from the $14.35-$14.60 mentioned in the previous quarter. The Zacks Consensus Estimate for the same is pegged at $14.79, lower than the company’s guided range. The revenue growth guidance is raised to 11.5-12.5% from the 8-10% stated in the previous quarter. The company lowered the guidance for capital expenditure to $160-$170 million from the $180-$190 mentioned in the previous quarter.

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

Earnings Snapshot of SPGI’s Peers

The Interpublic Group of Companies, Inc. IPG reported third-quarter 2024 results.

IPG’s adjusted earnings (excluding 65 cents from non-recurring items) of 70 cents per share met the Zacks Consensus Estimate and was flat with the year-ago quarter. Revenues before billable expenses (net revenues) of $2.2 billion missed the consensus estimate by 2.3% and declined 16.2% year over year. Total revenues of $2.6 billion fell 1.9% year over year and outpaced the Zacks Consensus Estimate of $2.3 billion.

Fiserv, Inc. FI reported mixed third-quarter 2024 results.

FI’s adjusted earnings per share (excluding $1.3 from non-recurring items) of $2.3 beat the consensus mark by 2.2% and gained 17.4% year over year. Adjusted revenues of $4.9 billion missed the consensus estimate by a slight margin but rose a tad on a year-over-year basis.

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