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SPGI has a decent earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missing the remaining one, with the average surprise being 5.94%.
The Zacks Consensus Estimate for revenues is pegged at $3.4 billion, suggesting 11.5% growth from the year-ago quarter’s actual. The top line is estimated to have gained from CARFAX, growth in asset-linked fees and softness in financial services.
Our anticipation for Mobility revenues hints at 8.7% growth from the year-ago quarter to $412 million. This segment’s revenues are anticipated to have been fueled by the growth in products including new car listings and continued success in CARFAX. We expect Commodity Insights' revenues to be $517.2 million, indicating an 8% increase on a year-over-year basis. We believe strong performance across all business lines with price assessments and Energy and Resources Data and Insights growing steadily have benefited this segment.
The estimate for Ratings revenues is pegged at $849.2 million, suggesting 3.7% growth from the year-ago quarter’s actual. We anticipate revenue growth in this segment to have been backed by a surge in annual fee revenues and a rise in new mandates mainly from the return of high-yield issuers.
We expect Indices revenues of 383.6 million, implying an 8.4% rise year over year. Healthy growth in asset-linked fees benefited from higher AUM and growth in the company’s data and customer subscription offerings are anticipated to have driven this segment’s revenues. Our expectation for Market Intelligence revenues for the third quarter of 2024 is pegged at $1.2 billion, rising 6% year over year. Improvement in this segment is likely to have been facilitated by Data Advisory Solutions led by expanded coverage and investment in high-growth areas in SPGI’s market data and Enterprise solutions backed by ClearPar and primary market groups being the beneficiaries of stronger equity and debt capital market activity.
The consensus estimate for earnings per share is pegged at $3.6, up 13.4% on a year-over-year basis. Expense discipline is likely to have resulted in bottom-line growth. We expect adjusted EBITDA for the quarter to be $1.7 billion, declining marginally from the year-ago quarter’s reported number. The adjusted EBITDA margin is anticipated to be 52.8%, down from the year-ago quarter’s 56.2%.
What Our Model Predicts About SPGI
Our model predicts a likely earnings beat for SPGI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Here are a few stocks from the broader Business Services sector, which, according to our model, also have the right combination of elements to beat on earnings this season.
Automatic Data Processing (ADP - Free Report) : The Zacks Consensus Estimate for the company’s third-quarter 2024 revenues is pegged at $4.8 billion, suggesting 5.5% growth from the year-ago quarter’s reported figure. For earnings, the consensus mark is pegged at $2.2 per share, hinting at a 5.7% rise from the year-ago quarter’s actual. The company beat the consensus estimate in each of the trailing four quarters, with an average surprise of 2.3%.
ADP currently has an Earnings ESP of +1.67% and a Zacks Rank of 3. The company is scheduled to post its third-quarter 2024 results on Oct. 30.
Visa (V - Free Report) : The Zacks Consensus Estimate for the company’s third-quarter 2024 revenues is pegged at $9.5 billion, suggesting 10.1% growth from the year-ago quarter’s reported figure. For earnings, the consensus mark is pegged at $2.6 per share, implying a 10.7% rise from the year-ago quarter’s actual. The company beat the consensus estimate in each of the trailing four quarters, with an average surprise of 2.9%.
V currently has an Earnings ESP of +0.23% and a Zacks Rank of 3. The company is scheduled to declare its third-quarter 2024 results on Oct. 29.
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S&P Global to Report Q3 Earnings: Here's What You Should Know
S&P Global Inc. (SPGI - Free Report) is scheduled to release its third-quarter 2024 results on Oct. 24, before market open.
See Zacks Earnings Calendar to stay ahead of market-making news.
SPGI has a decent earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missing the remaining one, with the average surprise being 5.94%.
S&P Global Inc. Price and EPS Surprise
S&P Global Inc. price-eps-surprise | S&P Global Inc. Quote
SPGI’s Q3 Expectations
The Zacks Consensus Estimate for revenues is pegged at $3.4 billion, suggesting 11.5% growth from the year-ago quarter’s actual. The top line is estimated to have gained from CARFAX, growth in asset-linked fees and softness in financial services.
Our anticipation for Mobility revenues hints at 8.7% growth from the year-ago quarter to $412 million. This segment’s revenues are anticipated to have been fueled by the growth in products including new car listings and continued success in CARFAX. We expect Commodity Insights' revenues to be $517.2 million, indicating an 8% increase on a year-over-year basis. We believe strong performance across all business lines with price assessments and Energy and Resources Data and Insights growing steadily have benefited this segment.
The estimate for Ratings revenues is pegged at $849.2 million, suggesting 3.7% growth from the year-ago quarter’s actual. We anticipate revenue growth in this segment to have been backed by a surge in annual fee revenues and a rise in new mandates mainly from the return of high-yield issuers.
We expect Indices revenues of 383.6 million, implying an 8.4% rise year over year. Healthy growth in asset-linked fees benefited from higher AUM and growth in the company’s data and customer subscription offerings are anticipated to have driven this segment’s revenues. Our expectation for Market Intelligence revenues for the third quarter of 2024 is pegged at $1.2 billion, rising 6% year over year. Improvement in this segment is likely to have been facilitated by Data Advisory Solutions led by expanded coverage and investment in high-growth areas in SPGI’s market data and Enterprise solutions backed by ClearPar and primary market groups being the beneficiaries of stronger equity and debt capital market activity.
The consensus estimate for earnings per share is pegged at $3.6, up 13.4% on a year-over-year basis. Expense discipline is likely to have resulted in bottom-line growth. We expect adjusted EBITDA for the quarter to be $1.7 billion, declining marginally from the year-ago quarter’s reported number. The adjusted EBITDA margin is anticipated to be 52.8%, down from the year-ago quarter’s 56.2%.
What Our Model Predicts About SPGI
Our model predicts a likely earnings beat for SPGI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
SPGI has an Earnings ESP of +1.84% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are a few stocks from the broader Business Services sector, which, according to our model, also have the right combination of elements to beat on earnings this season.
Automatic Data Processing (ADP - Free Report) : The Zacks Consensus Estimate for the company’s third-quarter 2024 revenues is pegged at $4.8 billion, suggesting 5.5% growth from the year-ago quarter’s reported figure. For earnings, the consensus mark is pegged at $2.2 per share, hinting at a 5.7% rise from the year-ago quarter’s actual. The company beat the consensus estimate in each of the trailing four quarters, with an average surprise of 2.3%.
ADP currently has an Earnings ESP of +1.67% and a Zacks Rank of 3. The company is scheduled to post its third-quarter 2024 results on Oct. 30.
Visa (V - Free Report) : The Zacks Consensus Estimate for the company’s third-quarter 2024 revenues is pegged at $9.5 billion, suggesting 10.1% growth from the year-ago quarter’s reported figure. For earnings, the consensus mark is pegged at $2.6 per share, implying a 10.7% rise from the year-ago quarter’s actual. The company beat the consensus estimate in each of the trailing four quarters, with an average surprise of 2.9%.
V currently has an Earnings ESP of +0.23% and a Zacks Rank of 3. The company is scheduled to declare its third-quarter 2024 results on Oct. 29.