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S&P Global (SPGI) Q2 Earnings Meet Estimates, Rise Y/Y
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S&P Global Inc.’s (SPGI - Free Report) second-quarter earnings match the Zacks Consensus Estimate while revenue surpass the same.
Adjusted earnings per share (excluding $1.52 from non-recurring items) of $3.12 were up 11% year over year. Revenues of $3.1 billion surpassed the Zacks Consensus Estimate by 1.1% and improved 3.6% year over year, backed by the synergies from Market Scan Information Systems and ChartIQ.
Segmental Revenues
Ratings’ revenues increased 7% year over year to $851 million, beating our estimate by 5.6%. Transaction’s revenues increased 11% year over year to $383 million and non-transaction revenues increased 4% year over year to $468 million. The Market Intelligence segment’s adjusted revenues were up 5% year over year to $1.08 billion.
Commodity Insights’ revenues increased 5% to $462 million in the second quarter of 2023, primarily driven by the inclusion of IHS Markit, Advisory & Transactional Services, as well as strength in Price Assessments and Energy & Resources Data & Insights. S&P Dow Jones Indices’ adjusted revenues grew 2% to $348 million, which beat our estimate of $341.3 million.
Segment-wise, Ratings’ adjusted operating profit increased 5% to $486 million and the adjusted operating profit margin came in at 58%, up from the year-ago quarter’s figure of 59.5%. Market Intelligence’s adjusted operating profit decreased 75% to $176 million and adjusted pro-forma operating profit margin plunged 100 bps to 32%.
Commodity Insights’ adjusted operating profit improved 10% to $156 million and the adjusted operating profit margin was 46%, compared with 44% reported a year ago. S&P Dow Jones Indices’ adjusted operating profit fell 16% to $226 million. However, the adjusted operating profit margin decreased 290 bps to 69%.
Balance Sheet and Cash Flow
S&P Global exited second-quarter 2023 with cash, cash equivalents and restricted cash of $1.56 billion, compared with $1.4 billion at the end of the prior quarter. Long-term debt was $10.68 billion, compared with $10.72 billion at the end of the previous quarter.
SPGI generated $769 million in cash from operating activities in the reported quarter. Capital expenditures were $31 million. Free cash flow was $676 million. Currently, S&P Global carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2023 Outlook
Adjusted earnings per share is expected in the range of $12.35-$12.55. The midpoint of the guided range ($12.45) lies above the Zacks Consensus Estimate of $12.44. Revenue growth is expected to be 4-6%.
Non-GAAP adjusted free cash flow (excluding certain items) is expected to be between $4.2 billion and $4.3 billion while capital Expenditures are expected to be around $140 million.
Earnings Snapshot
Interpublic Group of Companies(IPG - Free Report) second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same. Adjusted earnings (considering 6 cents from non-recurring items) came in at 74 cents per share, beating the consensus estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.
Equifax(EFX - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. Adjusted earnings (excluding 59 cents from non-recurring items) came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% while matching the year-ago figure on a reported basis. The top line gained 1% on a local-currency basis.
ManpowerGroup(MAN - Free Report) reported lower-than-expected results. Second-quarter adjusted earnings of $1.58 per share lagged the Zacks Consensus Estimate by 1.9% and declined 32.2% year over year, owing to restructuring costs and Argentina-related non-cash currency translation losses. Revenues of $4.9 billion missed the consensus mark by 0.6% and decreased 4.3% year over year on a reported basis. The same decreased 3% on a constant-currency basis.
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S&P Global (SPGI) Q2 Earnings Meet Estimates, Rise Y/Y
S&P Global Inc.’s (SPGI - Free Report) second-quarter earnings match the Zacks Consensus Estimate while revenue surpass the same.
Adjusted earnings per share (excluding $1.52 from non-recurring items) of $3.12 were up 11% year over year. Revenues of $3.1 billion surpassed the Zacks Consensus Estimate by 1.1% and improved 3.6% year over year, backed by the synergies from Market Scan Information Systems and ChartIQ.
Segmental Revenues
Ratings’ revenues increased 7% year over year to $851 million, beating our estimate by 5.6%. Transaction’s revenues increased 11% year over year to $383 million and non-transaction revenues increased 4% year over year to $468 million. The Market Intelligence segment’s adjusted revenues were up 5% year over year to $1.08 billion.
Commodity Insights’ revenues increased 5% to $462 million in the second quarter of 2023, primarily driven by the inclusion of IHS Markit, Advisory & Transactional Services, as well as strength in Price Assessments and Energy & Resources Data & Insights. S&P Dow Jones Indices’ adjusted revenues grew 2% to $348 million, which beat our estimate of $341.3 million.
S&P Global Inc. Price, Consensus and EPS Surprise
S&P Global Inc. price-consensus-eps-surprise-chart | S&P Global Inc. Quote
Operating Results
Segment-wise, Ratings’ adjusted operating profit increased 5% to $486 million and the adjusted operating profit margin came in at 58%, up from the year-ago quarter’s figure of 59.5%. Market Intelligence’s adjusted operating profit decreased 75% to $176 million and adjusted pro-forma operating profit margin plunged 100 bps to 32%.
Commodity Insights’ adjusted operating profit improved 10% to $156 million and the adjusted operating profit margin was 46%, compared with 44% reported a year ago. S&P Dow Jones Indices’ adjusted operating profit fell 16% to $226 million. However, the adjusted operating profit margin decreased 290 bps to 69%.
Balance Sheet and Cash Flow
S&P Global exited second-quarter 2023 with cash, cash equivalents and restricted cash of $1.56 billion, compared with $1.4 billion at the end of the prior quarter. Long-term debt was $10.68 billion, compared with $10.72 billion at the end of the previous quarter.
SPGI generated $769 million in cash from operating activities in the reported quarter. Capital expenditures were $31 million. Free cash flow was $676 million.
Currently, S&P Global carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2023 Outlook
Adjusted earnings per share is expected in the range of $12.35-$12.55. The midpoint of the guided range ($12.45) lies above the Zacks Consensus Estimate of $12.44. Revenue growth is expected to be 4-6%.
Non-GAAP adjusted free cash flow (excluding certain items) is expected to be between $4.2 billion and $4.3 billion while capital Expenditures are expected to be around $140 million.
Earnings Snapshot
Interpublic Group of Companies(IPG - Free Report) second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same. Adjusted earnings (considering 6 cents from non-recurring items) came in at 74 cents per share, beating the consensus estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.
Equifax(EFX - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. Adjusted earnings (excluding 59 cents from non-recurring items) came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% while matching the year-ago figure on a reported basis. The top line gained 1% on a local-currency basis.
ManpowerGroup(MAN - Free Report) reported lower-than-expected results. Second-quarter adjusted earnings of $1.58 per share lagged the Zacks Consensus Estimate by 1.9% and declined 32.2% year over year, owing to restructuring costs and Argentina-related non-cash currency translation losses. Revenues of $4.9 billion missed the consensus mark by 0.6% and decreased 4.3% year over year on a reported basis. The same decreased 3% on a constant-currency basis.