S&P Global (SPGI) Q4 Earnings & Revenues Beat Estimates
Zacks Investment Research | Feb 05, 2020 10:53PM ET
S&P Global Inc. (NYSE:SPGI) reported solid fourth-quarter 2019 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $2.53 beat the consensus mark by 4.9% and improved 14% year over year on the back of revenue growth and benefits of productivity initiatives, partially offset by investment spending, payments associated with the early retirement of company bonds, and a higher effective tax rate.
Revenues of $1.74 billion beat the consensus estimate by 2% and improved 13% year over year.
Over the past year, shares of S&P Global have gained 52.8%, outperforming the 38.7% growth of the industry it belongs to and 21% rise of the Zacks S&P 500 composite.
Segmental Revenues
Ratings revenues of $820 million increased 24% year over year. Non-transaction revenues improved 2% to $391 million on the back of increased fees associated with surveillance and intersegment royalties. Transaction revenues increased 55% to $429 million, owing to strong bond rating activity partially offset by lower bank loan rating revenues.
Market Intelligence revenues were up 5% year over year to $502 million, primarily driven by solid growth in Data Management Solutions and Credit Risk Services.
Platts revenues rose 1% to $213 million.
S&P Dow Jones Indices revenues increased 9% to $233 million driven by increased asset-linked fees, partially offset by decreased derivatives trading activity.
Operating Results
Adjusted operating profit increased 14% year over year to $866 million. Adjusted operating profit margin improved 40 basis points (bps) to 49.9%.
Segment wise, Ratings adjusted operating profit increased 29% to $473 million. Adjusted operating profit margin improved 220 bps to 57.7%.
For Market Intelligence, adjusted operating profit declined 6% to $172 million. Adjusted operating profit margin decreased 410 bps to 34.4%.
Platts’ adjusted operating profit increased 6% to $107 million and adjusted operating profit margin increased 220 bps to 50.4%.
S&P Dow Jones adjusted operating profit increased 10% to $158 million. Adjusted operating profit margin improved 70 bps to 67.8%.
S&P Global Inc. Price, Consensus and EPS Surprise
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