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S&P Global (SPGI) Beats Q3 Earnings and Revenue Estimates
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S&P Global Inc. (SPGI - Free Report) reported impressive third-quarter results, wherein earnings and revenues beat the Zacks Consensus Estimate.
Adjusted earnings per share (EPS) (excluding 88 cents from non-recurring items) of $3.21 rose 9.6% year over year and beat the Zacks Consensus Estimate by 5.3%. Revenues of $3.08 billion surpassed the consensus estimate by 2% and improved 8% year over year, backed by strong performances in all divisions.
Segmental Revenues
Revenues from Marketing Intelligence were $1.1 billion, up 8% from the year-ago figure and surpassed our estimate by 3.8%. Ratings revenues grew 20% to $819 million and exceeded our estimate by 1.7%. Revenues from Commodity Insights improved 11%, thus taking the figure to $479 million and beating our estimate by 12.7%.
Revenues from Mobility and Indices segment saw an uptick of 10% and 6%, thus amounting to $379 million and $354 million, respectively. Mobility revenues missed our estimated $383.2 million while Indices revenues surpassed our estimated $341.3 million.
Segment-wise, Market Intelligence’s adjusted operating profit increased 6% to $366 million and adjusted pro-forma operating profit margin plunged 90 bps to 33%. Ratings’ adjusted operating profit increased 22% to $464 million and adjusted operating profit margin was 57%, down from the year-ago figure of 55.9%.
Commodity Insights’ adjusted operating profit improved 17% to $232 million and adjusted operating profit margin was 48%, compared to 45.8% reported a year ago. S&P Dow Jones Indices’ adjusted operating profit fell 5% to $246 million. However, adjusted operating profit margin decreased 130 bps to 69%.
Adjusted operating profit was $1.45 billion and adjusted operating profit margin was 47% for the reported quarter, 100 basis points more than the year-ago reported figure.
Balance Sheet and Cash Flow
S&P Global exited third-quarter 2023 with cash, cash equivalents and restricted cash of $1.65 billion compared with $1.56 billion at the end of the prior quarter. Long-term debt was $11.41 billion compared with $10.68 billion at the end of the previous quarter.
SPGI generated $1.01 billion in cash from operating activities in the reported quarter. Capital expenditures were $36 million. Free cash flow was $906 million. The company returned $278 million in the form of dividends.
Adjusted EPS is expected to be in the range of $12.5-$12.6, up from the prior range of $12.35-$12.55. The Zacks Consensus Estimate of EPS of $12.47 lies below the guided range. Revenue growth is expected to be 4.5-5.5%, revised from 4-6%.
Non-GAAP adjusted free cash flow (excluding certain items) is expected to be between $4.2 billion and $4.3 billion. Capital expenditures are expected to be around $145 million.
Earnings Snapshot
Fiserv, Inc.(FI - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
FI’s adjusted EPS (excluding 40 cents from non-recurring items) of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and increased 8.2% year over year.
Organic revenue growth was 12% in the quarter, driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.
Waste Management Inc. (WM - Free Report) reported mixed third-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate while revenues missed the same.
WM’s Adjusted EPS of $1.63 surpassed the Zacks Consensus Estimate by 1.2% and improved 4.5% year over year. Total revenues of $5.2 billion missed the consensus estimate by 1.2% but increased 2.4% year over year.
Verisk Analytics Inc. (VRSK - Free Report) reported impressive third-quarter 2023 results wherein earnings and revenues beat the respective estimates.
Adjusted earnings (excluding 23 cents from non-recurring items) were $1.52 per share, beating the Zacks Consensus Estimate and increasing 4.1% from the year-ago reported figure. Such a beat was supported by strong growth in underwriting data solutions, life insurance and extreme events solutions.
VRSK’s total revenues of $677.6 million surpassed the consensus estimate by 2.3% but decreased 9.1% from the year-ago figure. The reduced top line can be correlated to the sale of the company’s environmental health and safety business and Financial Services segment.
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S&P Global (SPGI) Beats Q3 Earnings and Revenue Estimates
S&P Global Inc. (SPGI - Free Report) reported impressive third-quarter results, wherein earnings and revenues beat the Zacks Consensus Estimate.
Adjusted earnings per share (EPS) (excluding 88 cents from non-recurring items) of $3.21 rose 9.6% year over year and beat the Zacks Consensus Estimate by 5.3%. Revenues of $3.08 billion surpassed the consensus estimate by 2% and improved 8% year over year, backed by strong performances in all divisions.
Segmental Revenues
Revenues from Marketing Intelligence were $1.1 billion, up 8% from the year-ago figure and surpassed our estimate by 3.8%. Ratings revenues grew 20% to $819 million and exceeded our estimate by 1.7%. Revenues from Commodity Insights improved 11%, thus taking the figure to $479 million and beating our estimate by 12.7%.
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, Market Intelligence’s adjusted operating profit increased 6% to $366 million and adjusted pro-forma operating profit margin plunged 90 bps to 33%. Ratings’ adjusted operating profit increased 22% to $464 million and adjusted operating profit margin was 57%, down from the year-ago figure of 55.9%.
Commodity Insights’ adjusted operating profit improved 17% to $232 million and adjusted operating profit margin was 48%, compared to 45.8% reported a year ago. S&P Dow Jones Indices’ adjusted operating profit fell 5% to $246 million. However, adjusted operating profit margin decreased 130 bps to 69%.
Adjusted operating profit was $1.45 billion and adjusted operating profit margin was 47% for the reported quarter, 100 basis points more than the year-ago reported figure.
Balance Sheet and Cash Flow
S&P Global exited third-quarter 2023 with cash, cash equivalents and restricted cash of $1.65 billion compared with $1.56 billion at the end of the prior quarter. Long-term debt was $11.41 billion compared with $10.68 billion at the end of the previous quarter.
SPGI generated $1.01 billion in cash from operating activities in the reported quarter. Capital expenditures were $36 million. Free cash flow was $906 million. The company returned $278 million in the form of 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.
Updated 2023 Outlook
Adjusted EPS is expected to be in the range of $12.5-$12.6, up from the prior range of $12.35-$12.55. The Zacks Consensus Estimate of EPS of $12.47 lies below the guided range. Revenue growth is expected to be 4.5-5.5%, revised from 4-6%.
Non-GAAP adjusted free cash flow (excluding certain items) is expected to be between $4.2 billion and $4.3 billion. Capital expenditures are expected to be around $145 million.
Earnings Snapshot
Fiserv, Inc.(FI - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
FI’s adjusted EPS (excluding 40 cents from non-recurring items) of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and increased 8.2% year over year.
Organic revenue growth was 12% in the quarter, driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.
Waste Management Inc. (WM - Free Report) reported mixed third-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate while revenues missed the same.
WM’s Adjusted EPS of $1.63 surpassed the Zacks Consensus Estimate by 1.2% and improved 4.5% year over year. Total revenues of $5.2 billion missed the consensus estimate by 1.2% but increased 2.4% year over year.
Verisk Analytics Inc. (VRSK - Free Report) reported impressive third-quarter 2023 results wherein earnings and revenues beat the respective estimates.
Adjusted earnings (excluding 23 cents from non-recurring items) were $1.52 per share, beating the Zacks Consensus Estimate and increasing 4.1% from the year-ago reported figure. Such a beat was supported by strong growth in underwriting data solutions, life insurance and extreme events solutions.
VRSK’s total revenues of $677.6 million surpassed the consensus estimate by 2.3% but decreased 9.1% from the year-ago figure. The reduced top line can be correlated to the sale of the company’s environmental health and safety business and Financial Services segment.