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S&P Global (SPGI) to Report Q3 Earnings: What's in Store?
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S&P Global Inc. (SPGI - Free Report) is slated to report third-quarter 2018 results on Oct 25, before market open.
Strength across segments, operating performance and positive impact of U.S. tax reforms are likely to boost S&P Global's results.
So far this year, shares of S&P Global have gained 11.5%, outperforming the 10.3% rise of the industry it belongs to and 3.6% gain of the Zacks S&P 500 Composite Index.
Let’s check out the expectations in detail.
Strength Across Segments to Drive Top Line
The Zacks Consensus Estimate for third-quarter revenues is pegged at $1.58 billion, indicating a 4.6% increase year over year. The top line is expected to benefit from growth across S&P Global Ratings ("Ratings") and S&P Dow Jones Indices ("Indices") segments.
The consensus estimate for Ratings revenues is pegged at $765 million, reflecting year-over-year growth of 3.5%. Revenues are expected to be driven by strength across bank loan ratings, structured finance, non-transaction revenues and transaction revenues. Growth across EMEA and Asia-Pacific regions should boost the segments’ international revenues.
The consensus estimate for non-transaction and transaction revenues is pegged at $385 million and $381 million, respectively, projecting year-over-year growth of 4.9% and 2.4%. While growth in fees associated with surveillance, new entity ratings and Rating Evaluation Service fees should drive non-transaction revenues, increased bank loan ratings revenues is likely to boost transaction revenues.
Indices revenues are likely to be driven by an increase in asset-linked fees and revenues associated with exchange-traded derivatives. The consensus estimate for Indices revenues is pegged at $206 million, indicating year-over-year growth of 10.2%.
In second-quarter 2018, total revenues increased 6.6% year over year to $1.61 billion.
Bottom Line to Improve Year Over Year
The Zacks Consensus Estimate for earnings per share (EPS) in the to-be-reported quarter is pegged at $2.01, indicating year-over-year growth of 17.5%. Lower tax rates (as a result of Tax Cuts and Jobs Act), revenue growth and operating leverage are likely to boost S&P Global’s bottom line.
In second-quarter 2018, adjusted earnings increased 26% year over year to $2.17 per share.
What Does Our Model Indicate?
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
S&P Global has a Zacks Rank #3 and an Earnings ESP of 0.00%, a combination that makes surprise prediction difficult.
Here are a few stocks from the broader Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings in third-quarter 2018:
WEX (WEX - Free Report) has an Earnings ESP of +0.49% and a Zacks Rank #2. The company is scheduled to report results on Oct 31.
FTI Consulting (FCN - Free Report) has an Earnings ESP of +4.43% and a Zacks Rank #3. The company is scheduled to report results on Oct 25.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
S&P Global (SPGI) to Report Q3 Earnings: What's in Store?
S&P Global Inc. (SPGI - Free Report) is slated to report third-quarter 2018 results on Oct 25, before market open.
Strength across segments, operating performance and positive impact of U.S. tax reforms are likely to boost S&P Global's results.
So far this year, shares of S&P Global have gained 11.5%, outperforming the 10.3% rise of the industry it belongs to and 3.6% gain of the Zacks S&P 500 Composite Index.
Let’s check out the expectations in detail.
Strength Across Segments to Drive Top Line
The Zacks Consensus Estimate for third-quarter revenues is pegged at $1.58 billion, indicating a 4.6% increase year over year. The top line is expected to benefit from growth across S&P Global Ratings ("Ratings") and S&P Dow Jones Indices ("Indices") segments.
The consensus estimate for Ratings revenues is pegged at $765 million, reflecting year-over-year growth of 3.5%. Revenues are expected to be driven by strength across bank loan ratings, structured finance, non-transaction revenues and transaction revenues. Growth across EMEA and Asia-Pacific regions should boost the segments’ international revenues.
The consensus estimate for non-transaction and transaction revenues is pegged at $385 million and $381 million, respectively, projecting year-over-year growth of 4.9% and 2.4%. While growth in fees associated with surveillance, new entity ratings and Rating Evaluation Service fees should drive non-transaction revenues, increased bank loan ratings revenues is likely to boost transaction revenues.
Indices revenues are likely to be driven by an increase in asset-linked fees and revenues associated with exchange-traded derivatives. The consensus estimate for Indices revenues is pegged at $206 million, indicating year-over-year growth of 10.2%.
S&P Global Inc. Revenue (TTM)
S&P Global Inc. Revenue (TTM) | S&P Global Inc. Quote
In second-quarter 2018, total revenues increased 6.6% year over year to $1.61 billion.
Bottom Line to Improve Year Over Year
The Zacks Consensus Estimate for earnings per share (EPS) in the to-be-reported quarter is pegged at $2.01, indicating year-over-year growth of 17.5%. Lower tax rates (as a result of Tax Cuts and Jobs Act), revenue growth and operating leverage are likely to boost S&P Global’s bottom line.
In second-quarter 2018, adjusted earnings increased 26% year over year to $2.17 per share.
What Does Our Model Indicate?
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
S&P Global has a Zacks Rank #3 and an Earnings ESP of 0.00%, a combination that makes surprise prediction difficult.
S&P Global Inc. Price and EPS Surprise
S&P Global Inc. Price and EPS Surprise | S&P Global Inc. Quote
Stocks to Consider
Here are a few stocks from the broader Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings in third-quarter 2018:
Waste Management (WM - Free Report) has an Earnings ESP of +0.99% and a Zacks Rank #2. The company is slated to release results on Oct 25. You can see the complete list of today’s Zacks #1 Rank stocks here.
WEX (WEX - Free Report) has an Earnings ESP of +0.49% and a Zacks Rank #2. The company is scheduled to report results on Oct 31.
FTI Consulting (FCN - Free Report) has an Earnings ESP of +4.43% and a Zacks Rank #3. The company is scheduled to report results on Oct 25.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>