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Valued at $158.3 billion by market cap, S&P Global Inc. (SPGI) is a leading provider of financial information, analytics, and credit ratings. Headquartered in New York City, the company delivers essential intelligence through its diverse portfolio of services, including credit ratings, market benchmarks, and data analytics, supporting key decision-making across financial markets, corporations, and governments. S&P Global is scheduled to release its Q4 earnings before the market opens on Tuesday, Feb. 11.
Ahead of the event, analysts expect SPGI to report a profit of $3.38 per share, up 8% from $3.13 in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on one other occasion.
Its adjusted earnings of $3.89 per share for the last quarter surpassed the consensus estimate by 6.9%. S&P Global's strong Q3 performance was driven by robust growth in its ratings segment and improved operational efficiencies.
For fiscal 2024, analysts expect SPGI to report EPS of $15.31, up 21.5% from $12.60 in fiscal 2023.
S&P Global's shares have increased by 15% over the past 52 weeks, underperforming the S&P 500 Index's ($SPX) 25.5% gains and the iShares U.S. Financial Services ETF’s (IYG) 37.4% returns over the same period.
On Oct. 24, S&P Global's shares declined by 3.5% following the release of its Q3 earnings. The company's revenue of $3.57 billion rose 16% annually. It has raised its full-year revenue growth guidance by 250 to 350 basis points, reflecting strong Q3 performance and an improved outlook for Q4. Adjusted operating margin is now expected to expand by 200 to 250 basis points, up from the previous range of 125 to 175 basis points.
The consensus opinion on SPGI stock is bullish, with an overall “Strong Buy” rating. Of the 21 analysts covering the stock, 18 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and one recommends a “Hold.” SPGI's average analyst price target is $589.67, indicating a potential upside of 15.4% from the current levels.
