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What's in the Cards for S&P Global (SPGI) in Q1 Earnings?
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S&P Global Inc. (SPGI - Free Report) is scheduled to release first-quarter 2020 results on Apr 28, before market open.
While the company’s top line is likely to have benefited from solid segmental performance, the bottom line is expected to have performed well on the back of revenue growth and benefits of productivity initiatives.
So far this year, shares of S&P Global have gained 2.3% against decline of 6.6% for the the industry it belongs to and 13.2% decrease of the Zacks S&P 500 composite.
Let’s check out the expectations in detail.
Segmental Growth to Drive Top Line
Strength across all the segments — S&P Global Ratings (“Ratings”), S&P Global Market Intelligence ("Market Intelligence"), S&P Global Platts ("Platts") and S&P Dow Jones Indices ("Indices") — is likely to have driven the company’s revenues in the first quarter. The Zacks Consensus Estimate for revenues stands at $1.71 billion, indicating growth of 8.6% from the year-ago period reported figure. In fourth-quarter 2019, total revenues of $1.74 billion increased 13% year over year.
Segment-wise,Ratings revenues are likely to have performed well on the back of strong high-yield issuance in the United States and Europe, and strong U.S. investment-grade issuance. Market Intelligence revenues are expected to have gained from growth in Desktop, Data Management Solutions, and Credit Risk Solutions. Platts revenues might have benefited from core subscription business and Global Trading Services. Indices revenues are likely to have been aided by gain in asset-linked fees and increase in exchange-traded derivative fees.
Bottom Line to Improve Year Over Year
Revenue growth and benefits of productivity initiatives are likely to have boosted S&P Global’s first-quarter 2020 earnings, the Zacks Consensus Estimate for which is pegged at $2.38 per share, indicating growth of 12.8% from the year-ago period reported figure. In fourth-quarter 2019, adjusted earnings of $2.53 per share increased 14% year over year.
What Our Model Says
The proven Zacks model does not conclusively predict an earnings beat for S&P Global 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
S&P Global has an Earnings ESP of -1.05% and a Zacks Rank #3.
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 first-quarter 2020 earnings.
Spotify Technology (SPOT - Free Report) has an Earnings ESP of +26.53% and a Zacks Rank #3. The company is slated to report results on Apr 9.
ICF International (ICFI - Free Report) has an Earnings ESP of +3.08% and a Zacks Rank #3. The company is slated to release results on May 5.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
What's in the Cards for S&P Global (SPGI) in Q1 Earnings?
S&P Global Inc. (SPGI - Free Report) is scheduled to release first-quarter 2020 results on Apr 28, before market open.
While the company’s top line is likely to have benefited from solid segmental performance, the bottom line is expected to have performed well on the back of revenue growth and benefits of productivity initiatives.
So far this year, shares of S&P Global have gained 2.3% against decline of 6.6% for the the industry it belongs to and 13.2% decrease of the Zacks S&P 500 composite.
Let’s check out the expectations in detail.
Segmental Growth to Drive Top Line
Strength across all the segments — S&P Global Ratings (“Ratings”), S&P Global Market Intelligence ("Market Intelligence"), S&P Global Platts ("Platts") and S&P Dow Jones Indices ("Indices") — is likely to have driven the company’s revenues in the first quarter. The Zacks Consensus Estimate for revenues stands at $1.71 billion, indicating growth of 8.6% from the year-ago period reported figure. In fourth-quarter 2019, total revenues of $1.74 billion increased 13% year over year.
Segment-wise,Ratings revenues are likely to have performed well on the back of strong high-yield issuance in the United States and Europe, and strong U.S. investment-grade issuance. Market Intelligence revenues are expected to have gained from growth in Desktop, Data Management Solutions, and Credit Risk Solutions. Platts revenues might have benefited from core subscription business and Global Trading Services. Indices revenues are likely to have been aided by gain in asset-linked fees and increase in exchange-traded derivative fees.
Bottom Line to Improve Year Over Year
Revenue growth and benefits of productivity initiatives are likely to have boosted S&P Global’s first-quarter 2020 earnings, the Zacks Consensus Estimate for which is pegged at $2.38 per share, indicating growth of 12.8% from the year-ago period reported figure. In fourth-quarter 2019, adjusted earnings of $2.53 per share increased 14% year over year.
What Our Model Says
The proven Zacks model does not conclusively predict an earnings beat for S&P Global 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
S&P Global has an Earnings ESP of -1.05% and a Zacks Rank #3.
S&P Global Inc. Price and EPS Surprise
S&P Global Inc. price-eps-surprise | S&P Global Inc. Quote
Stocks to Consider
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 first-quarter 2020 earnings.
Huron Consulting (HURN - Free Report) has an Earnings ESP of +3.20% and a Zacks Rank #2. The company is slated to release results on Apr 30. You can see the complete list of today’s Zacks #1 Rank stocks here.
Spotify Technology (SPOT - Free Report) has an Earnings ESP of +26.53% and a Zacks Rank #3. The company is slated to report results on Apr 9.
ICF International (ICFI - Free Report) has an Earnings ESP of +3.08% and a Zacks Rank #3. The company is slated to release results on May 5.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>