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S&P Global (SPGI) Q4 Earnings Beat Estimates, Down Y/Y
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S&P Global Inc. (SPGI - Free Report) reported impressive fourth-quarter 2022 results, wherein both earnings and revenue beat the respective Zacks Consensus Estimate.
Adjusted earnings per share (excluding $1.21 from non-recurring items) of $2.54 beat the Zacks Consensus Estimate by 2.8% but decreased 19.4% year over year. Revenues of $2.94 billion beat the Zacks Consensus Estimate by 2.5% and improved 40.6% year over year, backed by strength in every segment, except the Ratings division.
Ratings’ revenues decreased 29% year over year to $705 million. Transaction’s revenues fell 51% year over year to $249 million due to a decrease in issuance volumes. Revenues from Non-transaction dipped 6% year over year to $456 million due to fees associated with Rating Evaluation Services and new-entity credit ratings.
Market Intelligence segment’s adjusted revenues were up 83% year over year to $1.04 billion, primarily driven by Data & Advisory Solutions.
Commodity Insights’ revenues increased 70% to $451 million in the fourth quarter of 2022, primarily driven by the inclusion of IHS Markit, Price Assessments and strong growth in Energy & Resources Data & Insights.
S&P Dow Jones Indices’ adjusted revenues grew 14% to $344 million, driven by Exchange-Traded Derivatives revenue.
Operating Results
Segment-wise, Ratings’ adjusted operating profit decreased 40% to $338 million, while adjusted operating profit margin decreased 910 bps to 48%.
Market Intelligence’s adjusted operating profit increased 16% to $326 million, while adjusted pro-forma operating profit margin increased 360 bps to 31.4%. Commodity Insights’ adjusted operating profit increased 10% to $201 million, while adjusted operating profit margin increased 230 bps to 44.6%.
S&P Dow Jones Indices’ adjusted operating profit increased 2% to $214 million. Adjusted operating profit margin decreased 140 bps to 62.2%.
Balance Sheet and Cash Flow
S&P Global exited fourth-quarter 2022 with cash, cash equivalents and restricted cash of $1.3 billion compared with $1.4 billion at the end of the prior quarter. Long-term debt was $10.73 billion compared with $10.7 billion at the end of third-quarter 2022.
SPGI generated $1,113 million of cash from operating activities in the reported quarter. Capital expenditures were $28 million. Free cash flow was $1,012 million.
During the fourth quarter, S&P Global returned more than $1.3 billion to its shareholders through a combination of $1 billion in the form of an accelerated share repurchase agreement and $251 million of cash dividends.
Adjusted diluted EPS is expected to be in the range of $12.35-$12.55. The midpoint of the guided range ($12.45) matches with the Zacks Consensus Estimate.
Earnings Snapshots
Robert Half International Inc. (RHI - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed.
Quarterly earnings of $1.37 per share beat the Zacks Consensus Estimate by 1.5% but declined 9.3% year over year. Revenues of $1.73 billion missed the Zacks Consensus Estimate by 0.6% and decreased 2.4% year over year.
Automatic Data Processing, Inc. (ADP - Free Report) reported better-than-expected second-quarter fiscal 2023 results.
Adjusted earnings per share of $1.96 beat the Zacks Consensus Estimate by 0.5% and grew 19% from the year-ago fiscal quarter’s reading. Total revenues of $4.4 billion beat the Zacks Consensus Estimate by 0.3% and improved 9.1% from the year-ago fiscal quarter’s reading on a reported basis and 10% on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported impressive third-quarter fiscal 2023 results, with both earnings and revenues beating the respective Zacks Consensus Estimate. Quarterly adjusted earnings (excluding 84 cents from non-recurring items) per share of $1.07 beat the Zacks Consensus Estimate by 4.9% and increased 4.9% on a year-over-year basis.
Total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4% and increased 12.1% on a year-over-year basis.
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S&P Global (SPGI) Q4 Earnings Beat Estimates, Down Y/Y
S&P Global Inc. (SPGI - Free Report) reported impressive fourth-quarter 2022 results, wherein both earnings and revenue beat the respective Zacks Consensus Estimate.
Adjusted earnings per share (excluding $1.21 from non-recurring items) of $2.54 beat the Zacks Consensus Estimate by 2.8% but decreased 19.4% year over year. Revenues of $2.94 billion beat the Zacks Consensus Estimate by 2.5% and improved 40.6% year over year, backed by strength in every segment, except the Ratings division.
Let’s check out the numbers in detail.
S&P Global Inc. Price, Consensus and EPS Surprise
S&P Global Inc. price-consensus-eps-surprise-chart | S&P Global Inc. Quote
Segmental Revenues
Ratings’ revenues decreased 29% year over year to $705 million. Transaction’s revenues fell 51% year over year to $249 million due to a decrease in issuance volumes. Revenues from Non-transaction dipped 6% year over year to $456 million due to fees associated with Rating Evaluation Services and new-entity credit ratings.
Market Intelligence segment’s adjusted revenues were up 83% year over year to $1.04 billion, primarily driven by Data & Advisory Solutions.
Commodity Insights’ revenues increased 70% to $451 million in the fourth quarter of 2022, primarily driven by the inclusion of IHS Markit, Price Assessments and strong growth in Energy & Resources Data & Insights.
S&P Dow Jones Indices’ adjusted revenues grew 14% to $344 million, driven by Exchange-Traded Derivatives revenue.
Operating Results
Segment-wise, Ratings’ adjusted operating profit decreased 40% to $338 million, while adjusted operating profit margin decreased 910 bps to 48%.
Market Intelligence’s adjusted operating profit increased 16% to $326 million, while adjusted pro-forma operating profit margin increased 360 bps to 31.4%.
Commodity Insights’ adjusted operating profit increased 10% to $201 million, while adjusted operating profit margin increased 230 bps to 44.6%.
S&P Dow Jones Indices’ adjusted operating profit increased 2% to $214 million. Adjusted operating profit margin decreased 140 bps to 62.2%.
Balance Sheet and Cash Flow
S&P Global exited fourth-quarter 2022 with cash, cash equivalents and restricted cash of $1.3 billion compared with $1.4 billion at the end of the prior quarter. Long-term debt was $10.73 billion compared with $10.7 billion at the end of third-quarter 2022.
SPGI generated $1,113 million of cash from operating activities in the reported quarter. Capital expenditures were $28 million. Free cash flow was $1,012 million.
During the fourth quarter, S&P Global returned more than $1.3 billion to its shareholders through a combination of $1 billion in the form of an accelerated share repurchase agreement and $251 million of cash 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.
2023 EPS Outlook
Adjusted diluted EPS is expected to be in the range of $12.35-$12.55. The midpoint of the guided range ($12.45) matches with the Zacks Consensus Estimate.
Earnings Snapshots
Robert Half International Inc. (RHI - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed.
Quarterly earnings of $1.37 per share beat the Zacks Consensus Estimate by 1.5% but declined 9.3% year over year. Revenues of $1.73 billion missed the Zacks Consensus Estimate by 0.6% and decreased 2.4% year over year.
Automatic Data Processing, Inc. (ADP - Free Report) reported better-than-expected second-quarter fiscal 2023 results.
Adjusted earnings per share of $1.96 beat the Zacks Consensus Estimate by 0.5% and grew 19% from the year-ago fiscal quarter’s reading. Total revenues of $4.4 billion beat the Zacks Consensus Estimate by 0.3% and improved 9.1% from the year-ago fiscal quarter’s reading on a reported basis and 10% on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported impressive third-quarter fiscal 2023 results, with both earnings and revenues beating the respective Zacks Consensus Estimate. Quarterly adjusted earnings (excluding 84 cents from non-recurring items) per share of $1.07 beat the Zacks Consensus Estimate by 4.9% and increased 4.9% on a year-over-year basis.
Total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4% and increased 12.1% on a year-over-year basis.