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S&P Global (SPGI) to Report Q1 Earnings: What's in Store?

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S&P Global Inc. (SPGI - Free Report) is scheduled to release first-quarter 2019 results on May 2, before market open.

Strength across segments, productivity improvements 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 29.2%, outperforming the 24.6% rise of the industry it belongs to and 16.8% rise of the Zacks S&P 500 composite.

 

Let’s check out the expectations in detail.

Strength Across Segments to Drive the Top Line

The Zacks Consensus Estimate for first-quarter 2019 revenues is pegged at $1.60 billion, indicating growth of 1.9% from the year-ago reported figure. The top line should benefit from strength across S&P Global Market Intelligence ("Market Intelligence"), S&P Global Platts ("Platts") and S&P Dow Jones Indices ("Indices") segments, which is likely to be partially offset by a decline in S&P Global Ratings (“Ratings”) segment.

Going by segments, Market Intelligence revenues are expected to be driven by growth in Desktop, Data Management Solutions, and Risk Services. Platts revenues should benefit from increased subscriptions and solid growth in Global Trading Services. S&P Dow Jones Indices revenues are likely to be driven by an increase in derivatives trading activity.

Ratings revenues are expected to be hurt by decline in global debt issuance.

In fourth-quarter 2018, total revenues of $1.54 billion had decreased 3.3% year over year.

Bottom Line to Improve Year Over Year

The Zacks Consensus Estimate for earnings per share (EPS) is pegged at $2.11, indicating growth of 5.5% from the year-ago period reported figure. The bottom line should benefit from productivity improvements and lower effective tax rate (as a result of U.S. tax reform).

In fourth-quarter 2018, adjusted earnings of $2.22 per share had increased 20% year over year.

What Our Model Says

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 when the company is seeing negative estimate revisions. 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 #4 and an Earnings ESP of +0.79%.

S&P Global Inc. Price and EPS Surprise

 

S&P Global Inc. Price and EPS Surprise | S&P Global Inc. Quote

Stocks That Warrant a Look

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings in first-quarter 2019:

WEX (WEX - Free Report) has an Earnings ESP of +1.78% and a Zacks Rank #2. The company is scheduled to report results on May 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

FLEETCOR Technologies has an Earnings ESP of +0.38% and a Zacks Rank #2. The company is scheduled to report results on May 7.

EVERTEC (EVTC - Free Report) has an Earnings ESP of +3.73% and a Zacks Rank #3. The company is slated to release results on May 1.

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