We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
S&P Global (SPGI) Gains From Acquisitions Despite High Expenses
Read MoreHide Full Article
S&P Global (SPGI - Free Report) stock has jumped 23.6% in the past year, outperforming 20.9% growth of the industry it belongs to.
SPGI reported mixed fourth-quarter results, wherein earnings per share of $3.13 missed the Zacks Consensus Estimate by 0.6% but increased 23.2% year over year. Revenues of $3.2 billion surpassed the consensus estimate by 0.5% and improved 7.3% year over year, backed by strong performances in all divisions.
How is S&P Global Doing?
SPGI has received a boost from service launches that influenced its market standing positively. Supply Chain Console was introduced by S&P Global Market Intelligence, providing a comprehensive view of supply-chain dynamics. The S&P Global Canada Services Purchasing Managers' Index was launched as well. Platts (S&P Global Commodity Insights) added daily assessment of Southeast Asia LNG cargo to improve price transparency.
S&P Global pursues growth, innovation and the expansion of its content through strategic acquisitions. In 2023, Market Scan Information Systems and ChartIQ were acquired to enhance mobility services and strengthen S&P Global Market Intelligence, respectively. In 2022, the company improved second-party opinions by acquiring Shades of Green business. The merger with IHS Markit, completed on Feb 28, 2022, enhances data and analytics offerings.
S&P Global’s strategy to reward its shareholders through share repurchases and dividend payments is impressive. In 2023, S&P Global paid out $1.1 billion as dividends and $3.3 billion as share repurchases. In 2022, S&P Global paid out $1 billion as dividends and $12 billion as share repurchases. In 2021, S&P Global returned $743 million to shareholders in the form of dividend payments. These initiatives not only instill investor confidence but also positively impact the bottom line. Partly due to this positive, S&P Global shares have gained 23.6% in the trailing 12 months.
S&P Global is seeing a rise in expenses due to investments in ongoing productivity programs, higher compensation costs due to investments in growth initiatives, and the completion of acquisitions and higher incentive costs. In 2023, total expenses increased 3.4% year over year. Hence, its earnings are likely to remain under pressure in the future.
S&P Global's current ratio (a measure of liquidity) at the end of fourth-quarter 2023 was pegged at 0.84, lower than 0.92 at the end of the preceding quarter and the year-ago quarter’s 0.94. A current ratio of less than 1 indicates that the company may have problems paying off its short-term obligations.
Zacks Rank and Stocks to Consider
S&P Global currently carries a Zacks Rank #3 (Hold).
Image: Bigstock
S&P Global (SPGI) Gains From Acquisitions Despite High Expenses
S&P Global (SPGI - Free Report) stock has jumped 23.6% in the past year, outperforming 20.9% growth of the industry it belongs to.
SPGI reported mixed fourth-quarter results, wherein earnings per share of $3.13 missed the Zacks Consensus Estimate by 0.6% but increased 23.2% year over year. Revenues of $3.2 billion surpassed the consensus estimate by 0.5% and improved 7.3% year over year, backed by strong performances in all divisions.
How is S&P Global Doing?
SPGI has received a boost from service launches that influenced its market standing positively. Supply Chain Console was introduced by S&P Global Market Intelligence, providing a comprehensive view of supply-chain dynamics. The S&P Global Canada Services Purchasing Managers' Index was launched as well. Platts (S&P Global Commodity Insights) added daily assessment of Southeast Asia LNG cargo to improve price transparency.
S&P Global pursues growth, innovation and the expansion of its content through strategic acquisitions. In 2023, Market Scan Information Systems and ChartIQ were acquired to enhance mobility services and strengthen S&P Global Market Intelligence, respectively. In 2022, the company improved second-party opinions by acquiring Shades of Green business. The merger with IHS Markit, completed on Feb 28, 2022, enhances data and analytics offerings.
S&P Global Inc. Revenue (TTM)
S&P Global Inc. revenue-ttm | S&P Global Inc. Quote
S&P Global’s strategy to reward its shareholders through share repurchases and dividend payments is impressive. In 2023, S&P Global paid out $1.1 billion as dividends and $3.3 billion as share repurchases. In 2022, S&P Global paid out $1 billion as dividends and $12 billion as share repurchases. In 2021, S&P Global returned $743 million to shareholders in the form of dividend payments. These initiatives not only instill investor confidence but also positively impact the bottom line. Partly due to this positive, S&P Global shares have gained 23.6% in the trailing 12 months.
S&P Global is seeing a rise in expenses due to investments in ongoing productivity programs, higher compensation costs due to investments in growth initiatives, and the completion of acquisitions and higher incentive costs. In 2023, total expenses increased 3.4% year over year. Hence, its earnings are likely to remain under pressure in the future.
S&P Global's current ratio (a measure of liquidity) at the end of fourth-quarter 2023 was pegged at 0.84, lower than 0.92 at the end of the preceding quarter and the year-ago quarter’s 0.94. A current ratio of less than 1 indicates that the company may have problems paying off its short-term obligations.
Zacks Rank and Stocks to Consider
S&P Global currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Core & Main (CNM - Free Report) and The Hackett Group (HCKT - Free Report) .
Core & Main flaunts a Zacks Rank of 1 (Strong Buy) at present. CNM has a long-term earnings growth expectation of 12%. You can see the complete list of today’s Zacks #1 Rank stocks here.
CNM delivered a trailing four-quarter earnings surprise of 1.5%, on average.
The Hackett Group currently carries a Zacks Rank of 2 (Buy). The company has a long-term earnings growth expectation of 13.5%.
HCKT delivered a trailing four-quarter earnings surprise of 2.6%, on average.