S&P Global Q3: Earnings Beat, Boosts 2024 Outlook, Commits To Capital Returns Amid Leadership Shift

S&P Global Inc SPGI reported quarterly adjusted EPS of $3.89, which beat the analyst consensus estimate of $3.64 and represented a 21% increase year over year.

Quarterly sales were $3.575 billion, beating the analyst consensus estimate of $3.431 billion and representing a 16% increase year over year, driven by growth in all divisions. The stock price tanked after the print.

Adjusted operating profit margin increased 180 basis points to 48.8%, primarily due to revenue growth in its Ratings and Indices divisions.

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S&P Global generated $1.33 billion in free cash flow for the quarter.

Buyback and Dividend: For the full year 2024, the company expects to return approximately 85% of adjusted free cash flow to shareholders through dividends and share repurchases. The Board has authorized a quarterly cash dividend of $0.91. The company expects to execute additional accelerated share repurchases (ASR) totaling $1.3 billion in the coming weeks.

As announced earlier in June, S&P Global President of S&P Global Ratings Martina L. Cheung will become the company CEO effective November 1, 2024, taking over from Douglas Peterson. Eric Aboaf will join the company as CFO effective February 2025, taking over from interim finance chief Christopher Craig, as planned.

Outlook: S&P Global raised its full-year 2024 revenue outlook to 11.5% – 12.5% or $13.934 billion – $14.059 billion (prior 8.0% – 10.0% or $13.497 billion – $13.747 billion) versus the consensus of $13.79 billion. The company sees full-year adjusted EPS of $15.10 – $15.30 (prior $14.35 – $14.60), versus the $14.86 estimate. 

Price Action: SPGI stock is down 2.509% at $498.16 at the last check Thursday.

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