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New York-based S&P Global Inc. (SPGI) provides credit ratings, benchmarks, analytics, and workflow solutions in the global capital, commodity, and automotive markets. Valued at $151.66 billion by market cap, the company provides governments, businesses, and individuals with the right data, expertise, and connected technology to make decisions. The financial intelligence solutions provider is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Tuesday, Jul. 30.
Ahead of the event, analysts expect SPGI to report a profit of $3.58 per share on a diluted basis, up 14.7% from $3.12 per share in the year-ago quarter. The company beat or matched the consensus estimates in three of the last four quarters while missing on one other occasion.
For fiscal 2024, analysts expect SPGI to report EPS of $14.25, up 13.1% from $12.60 in fiscal 2023.
SPGI stock has underperformed the S&P 500’s ($SPX) 15.9% gains on a YTD basis, with shares up 9% during this period. Similarly, it underperformed the S&P 500 Financials Sector SPDR’s (XLF) 14.3% gains over the same time frame.
SPGI’s overall performance can be attributed to its robust Q1 results and updated full-year guidance. SPGI reported its Q1 results on Apr. 25, with its adjusted EPS coming in at $4.01, beating the consensus estimates of $3.68. The company’s revenue of $3.49 billion surpassed the Wall Street estimates of $3.39 billion. SPGI expects full-year adjusted EPS to be between $13.85 and $14.10, $0.10 higher than the previous guidance range. It expects revenue growth of 6% to 8%, 50 bps higher than the previous guidance range.
It expects cash provided by operating activities, less capital expenditures, and distributions to noncontrolling interest holders of approximately $4.2 billion, which is higher than the previous expectations of approximately $4.1 billion. The company expects adjusted free cash flow of approximately $4.5 billion, compared to the prior guidance of approximately $4.4 billion. SPGI shares closed up marginally on the day the results were released and have been on an uptrend since then.
Analysts’ consensus opinion on SPGI stock is bullish, with a “Strong Buy” rating overall. Out of 19 analysts covering the stock, 16 advise a “Strong Buy” rating, and three have a “Moderate Buy.” The average analyst price target for SPGI is $513.71, indicating a 6% potential upside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
