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Is a Beat in the Cards for S&P Global (SPGI) in Q2 Earnings?

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S&P Global Inc. (SPGI - Free Report) is scheduled to release second-quarter 2020 results on Jul 28, before market open.

While the company’s top line is likely to have benefited from solid segmental performance, the bottom line is expected to have performed well on the back of revenue growth and benefits of productivity initiatives.

Let’s check out the expectations in detail.

Segmental Growth to Drive Top Line

Strength across all the 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") — is likely to have driven the company’s revenues in the second quarter. The Zacks Consensus Estimate for revenues stands at $1.78 billion, indicating growth of 4.5% from the year-ago period reported figure.

Segment wise,Ratings revenues are likely to have been driven by solid issuance, in particular, record investment-grade issuance, in the United States.  Rise in global bond issuance and increased bank loan-rating activity is likely to have boosted Transaction revenues. Market Intelligence revenues are expected to have gained from growth in Desktop, Data Management Solutions, and Credit Risk Solutions, along with the inclusion of 451 Research. Platts revenues might have benefited from core subscription business and Global Trading Services. Indices revenues are likely to have been aided by gain in asset-linked fees and increase in exchange-traded derivative fees.

SP Global Inc. Revenue (TTM)

 

SP Global Inc. Revenue (TTM)

SP Global Inc. revenue-ttm | SP Global Inc. Quote

Bottom Line to Improve Year Over Year

Revenue growth, benefits of productivity initiatives and reduced business travel expenses are likely to have boosted S&P Global’s second-quarter 2020 earnings, the Zacks Consensus Estimate for which is pegged at $2.70 per share, indicating growth of 11.1% from the year-ago period reported figure.

What Our Model Says

Our proven model predicts an earnings beat for S&P Global this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. 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 +3.27% and a Zacks Rank #3.

SP Global Inc. Price and EPS Surprise

 

SP Global Inc. Price and EPS Surprise

SP Global Inc. price-eps-surprise | SP Global Inc. Quote

Other Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these also have the right combination of elements to beat on second-quarter 2020 earnings.

Waste Management (WM - Free Report) has an Earnings ESP of +7.67% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Aptiv (APTV - Free Report) has an Earnings ESP of +5.84% and a Zacks Rank #3.

Waste Connections (WCN - Free Report) has an Earnings ESP of +7.04% and a Zacks Rank #3.

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