Credit Rating Company S&P Global Q2 Sales Rise 14%, Boosts Guidance

S&P Global Inc SPGI reported quarterly adjusted EPS of $4.04, which beat the analyst consensus estimate of $3.65 and represented a 30% increase year over year.

Quarterly sales were $3.55 billion, beating the analyst consensus estimate of $3.42 billion and representing a 14% increase year over year, driven by growth in all divisions.

Adjusted operating profit margin increased 450 basis points to 50.7%, primarily due to revenue growth in its Ratings and Indices divisions.

S&P Global generated $1.5 billion in free cash flow for the quarter.

Also Read: Leadership Shuffle At S&P Global: Picks Insider Martina Cheung As CEO

Buyback: S&P Global expects to execute additional accelerated share repurchases (ASR) totaling $1.5 billion in the coming weeks.

Outlook: S&P Global raised its full-year 2024 revenue outlook from to 8.0% – 10.0% (prior 6% – 8%) versus the consensus of $13.55 billion. The company sees full-year adjusted EPS of $14.35 – $14.60 (prior $13.85 – $14.10), versus the $14.33 estimate. 

S&P Global stock gained 24% in the last 12 months.

Is SPGI A Good Stock To Buy?

Wall Street analysts view S&P Global on the whole as a Outperform, given the history of coverage over the past three months. Alex Kramm from UBS in S&P Global is the most optimistic, expecting a 9.9% rise in the stock in the coming year.

But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past 3 months, S&P Global rose 16.8%, which indicates that opinion improved on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which rose 14.45% over the past year.

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Price Action: SPGI shares are up 0.01% at $489.90 at the last check Tuesday.

Image via Unsplash/ Headway