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S&P Global (SPGI) to Report Q2 Earnings: Is a Beat in Store?
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S&P Global Inc. (SPGI - Free Report) is slated to report second-quarter 2018 results on Jul 26, before the bell.
Strength across segments, margin improvement and positive impact of U.S. tax reforms are likely to boost S&P Global's results.
Year to date, we observe that shares of S&P Global have gained 25.3%, outperforming the industry’s 18% rally.
Let’s check out the expectations in detail.
Top Line Likely to Improve Year Over Year
The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.6 billion, mirroring a 5.9% increase year over year. The top line is expected to benefit from growth across segments — S&P Global Ratings ("Ratings"), S&P Global Market Intelligence ("Market Intelligence"), S&P Global Platts ("Platts") and S&P Dow Jones Indices ("Indices").
S&P Global Ratings’ revenues are expected to be driven by an increase in non-transaction and international revenues. Increase in new entity ratings and Rating Evaluation Service fees as well as fees associated with surveillance are likely to improve non-transaction revenues while decline in corporate bonds and public finance are likely to hurt transaction revenues. Growth across EMEA and Asia-Pacific regions should boost the segments’ international revenues.
Revenues at the S&P Global Market Intelligence are likely to be driven by growth across Desktop, Data Management Solutions, and Risk Services. Growth in the core subscription business is likely to boost S&P Global Platts’ top line. S&P Dow Jones Indices revenues are likely to be driven by increase in revenues related to exchange-traded derivatives activity.
In first-quarter 2018, revenues increased 8% year over year to $1.57 billion.
Bottom Line Expectations
The Zacks Consensus Estimate for earnings per share (EPS) in the to-be-reported quarter is pegged at $2.13, indicating year-over-year growth of 23.8%. Lower tax rates (as a result of Tax Cuts and Jobs Act), revenue growth and operating performance are likely to boost the company’s bottom line.
In first-quarter 2018, adjusted earnings increased 24% to $2.00 per share.
Our Model Suggests a Beat
Per the Zacks model, a company with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
S&P Global has an Earnings ESP of +0.55% and a Zacks Rank #3, a combination that increases the odds of an earnings beat.
Key Picks
Here are a few stocks from the broader Business Services sector that investors may also consider, as our model shows that these have the right combination of elements to beat on earnings in second-quarter 2018:
IQVIA Holdings (IQV - Free Report) has an Earnings ESP of +0.25% and a Zacks Rank #2. The company is slated to report quarterly results on Jul 24.
TransUnion (TRU - Free Report) has an Earnings ESP of +1.47% and a Zacks Rank #3. The company is slated to report quarterly numbers on Jul 24.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
S&P Global (SPGI) to Report Q2 Earnings: Is a Beat in Store?
S&P Global Inc. (SPGI - Free Report) is slated to report second-quarter 2018 results on Jul 26, before the bell.
Strength across segments, margin improvement and positive impact of U.S. tax reforms are likely to boost S&P Global's results.
Year to date, we observe that shares of S&P Global have gained 25.3%, outperforming the industry’s 18% rally.
Let’s check out the expectations in detail.
Top Line Likely to Improve Year Over Year
The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.6 billion, mirroring a 5.9% increase year over year. The top line is expected to benefit from growth across segments — S&P Global Ratings ("Ratings"), S&P Global Market Intelligence ("Market Intelligence"), S&P Global Platts ("Platts") and S&P Dow Jones Indices ("Indices").
S&P Global Ratings’ revenues are expected to be driven by an increase in non-transaction and international revenues. Increase in new entity ratings and Rating Evaluation Service fees as well as fees associated with surveillance are likely to improve non-transaction revenues while decline in corporate bonds and public finance are likely to hurt transaction revenues. Growth across EMEA and Asia-Pacific regions should boost the segments’ international revenues.
Revenues at the S&P Global Market Intelligence are likely to be driven by growth across Desktop, Data Management Solutions, and Risk Services. Growth in the core subscription business is likely to boost S&P Global Platts’ top line. S&P Dow Jones Indices revenues are likely to be driven by increase in revenues related to exchange-traded derivatives activity.
S&P Global Inc. Revenue (TTM)
S&P Global Inc. Revenue (TTM) | S&P Global Inc. Quote
In first-quarter 2018, revenues increased 8% year over year to $1.57 billion.
Bottom Line Expectations
The Zacks Consensus Estimate for earnings per share (EPS) in the to-be-reported quarter is pegged at $2.13, indicating year-over-year growth of 23.8%. Lower tax rates (as a result of Tax Cuts and Jobs Act), revenue growth and operating performance are likely to boost the company’s bottom line.
In first-quarter 2018, adjusted earnings increased 24% to $2.00 per share.
Our Model Suggests a Beat
Per the Zacks model, a company with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
S&P Global has an Earnings ESP of +0.55% and a Zacks Rank #3, a combination that increases the odds of an earnings beat.
Key Picks
Here are a few stocks from the broader Business Services sector that investors may also consider, as our model shows that these have the right combination of elements to beat on earnings in second-quarter 2018:
Avis Budget Group (CAR - Free Report) has an Earnings ESP of +5.17% and a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Aug 7. You can see the complete list of today’s Zacks #1 Rank stocks here.
IQVIA Holdings (IQV - Free Report) has an Earnings ESP of +0.25% and a Zacks Rank #2. The company is slated to report quarterly results on Jul 24.
TransUnion (TRU - Free Report) has an Earnings ESP of +1.47% and a Zacks Rank #3. The company is slated to report quarterly numbers on Jul 24.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>