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Can S&P Global (SPGI) Pull a Surprise This Earnings Season?
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McGraw-Hill Financial which is rechristened as S&P Global, Inc. (SPGI - Free Report) is slated to report second-quarter 2016 results on Jul 28. In the previously concluded quarter, the company delivered a positive earnings surprise of 4.4%.
Notably, the company surpassed the Zacks Consensus Estimate in each of the last four quarters with an average positive earnings surprise of 6.9%. Nonetheless, it remains to be seen if the company will be able to keep its earnings streak alive. Let’s see how things are shaping up for this announcement.
Likely Earnings Beat in the Cards
Our proven model shows that S&P Global is likely to beat earnings estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. The Most Accurate estimate stands at $1.38, while the Zacks Consensus Estimate is pegged at $1.34. So the ensuing difference – the Earnings ESP – is of +2.99%. A positive ESP combined with the company’s Zacks Rank #3, makes us reasonably confident of an earnings beat.
Factors Influencing This Quarter
S&P Global is now focusing on its core business which is helping it emerge as a leader among rating providers, benchmark providers, and analytics in the global capital and commodity markets. The company has been consistently making strategic investments in businesses such as the buyout of SNL Financial to facilitate long-term profitability.
The formation of S&P Dow Jones Indices, coupled with S&P Capital IQ’s acquisitions of Credit Market Analysis Limited, QuantHouse, R2 Financial Technologies along with a significant stake in India’s leading rating agency CRISIL, position it well against its competitors to grab a wider market through superior functionality and investor oriented services and in turn boost top-and bottom-line results.
All these endeavors have helped it to continue with its positive earnings surprise streak for the thirteenth quarter in a row, when it reported first-quarter 2016 results. We believe the company is anticipated to report better-than-expected earnings when it will report second-quarter earnings based on the aforementioned factors.
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
CBS Corp. has an Earnings ESP of +1.16% and a Zacks Rank #2 (Buy).
Time Warner Inc. has an Earnings ESP of +0.87% and a Zacks Rank #3 (Hold).
Expedia Inc. (EXPE - Free Report) has an Earnings ESP of +6.82% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Can S&P Global (SPGI) Pull a Surprise This Earnings Season?
McGraw-Hill Financial which is rechristened as S&P Global, Inc. (SPGI - Free Report) is slated to report second-quarter 2016 results on Jul 28. In the previously concluded quarter, the company delivered a positive earnings surprise of 4.4%.
Notably, the company surpassed the Zacks Consensus Estimate in each of the last four quarters with an average positive earnings surprise of 6.9%. Nonetheless, it remains to be seen if the company will be able to keep its earnings streak alive. Let’s see how things are shaping up for this announcement.
Likely Earnings Beat in the Cards
Our proven model shows that S&P Global is likely to beat earnings estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. The Most Accurate estimate stands at $1.38, while the Zacks Consensus Estimate is pegged at $1.34. So the ensuing difference – the Earnings ESP – is of +2.99%. A positive ESP combined with the company’s Zacks Rank #3, makes us reasonably confident of an earnings beat.
Factors Influencing This Quarter
S&P Global is now focusing on its core business which is helping it emerge as a leader among rating providers, benchmark providers, and analytics in the global capital and commodity markets. The company has been consistently making strategic investments in businesses such as the buyout of SNL Financial to facilitate long-term profitability.
The formation of S&P Dow Jones Indices, coupled with S&P Capital IQ’s acquisitions of Credit Market Analysis Limited, QuantHouse, R2 Financial Technologies along with a significant stake in India’s leading rating agency CRISIL, position it well against its competitors to grab a wider market through superior functionality and investor oriented services and in turn boost top-and bottom-line results.
All these endeavors have helped it to continue with its positive earnings surprise streak for the thirteenth quarter in a row, when it reported first-quarter 2016 results. We believe the company is anticipated to report better-than-expected earnings when it will report second-quarter earnings based on the aforementioned factors.
S&P GLOBAL INC Price and EPS Surprise
S&P GLOBAL INC Price and EPS Surprise | S&P GLOBAL INC Quote
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
CBS Corp. has an Earnings ESP of +1.16% and a Zacks Rank #2 (Buy).
Time Warner Inc. has an Earnings ESP of +0.87% and a Zacks Rank #3 (Hold).
Expedia Inc. (EXPE - Free Report) has an Earnings ESP of +6.82% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>