S&P Global Stock Gains On Impressive Q2 Segment Performance, FY21 Guidance Hike

  • S&P Global Inc SPGI reported second-quarter FY21 revenue growth of 8% year-on-year to $2.1 billion, beating the analyst consensus of $1.99 billion.
  • Revenues from Ratings' increased 7% Y/Y to $1.1 billion, S&P Dow Jones Indices rose 16% Y/Y to $278 million, Market Intelligence climbed 8% Y/Y to $555 million, and Platts grew 9% Y/Y to $236 million.
  • Adjusted operating profit margin decreased 40 basis points to 58.3% primarily due to a challenging expense compared to Q2 2020 and increased compensation-related expenses in 2021.
  • Non-GAAP EPS of $3.62 beat the analyst consensus of $3.24.
  • S&P generated $1.7 billion in operating cash flow in the six months ended Jun. 30 and held $5.2 billion in cash and equivalents. It returned $185 million in dividends.
  • Normalizing markets, reopening of economies, rising employment, and recovering GDP are likely to bode well for S&P Global as it continues to provide clients with an ever-increasing array of ratings, benchmarks, data, and analytics, CEO Douglas L. Peterson stated.
  • S&P Global and IHS Markit Ltd INFO continue to progress with merger integration planning.
  • Outlook: S&P expects its FY21 reported revenue to increase to high single-digits compared to the analyst consensus of $7.93 billion.
  • It raised the adjusted EPS guidance by $0.40 to $12.95 - $13.15, versus the analyst consensus of $12.79.
  • Price action: SPGI shares traded higher by 2.74% at $422.89 on the last check Thursday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsLong IdeasNewsGuidanceMoversTechTrading IdeasBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!