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S&P Global Inc. (SPGI), headquartered in New York, is a leading provider of credit ratings, market intelligence, and analytics. With a market cap of $163.34 billion, S&P Global delivers essential insights and solutions to businesses, governments, and investors worldwide. The company is set to announce its Q3 earnings before the market opens on Thursday, Oct. 24.
Ahead of the event, analysts expect SPGI to report a profit of $3.46 per share, up 7.8% from $3.21 in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on another occasion.
Its adjusted earnings of $4.04 per share for the last quarter surpassed the consensus estimate by 10.1%. S&P Global's strong Q2 performance was driven by robust growth in Ratings and Commodity Insights and improved operating margins.
For fiscal 2024, analysts expect SPGI to report EPS of $14.67, up 16.4% from $12.60 in fiscal 2023.
SPGI stock is up 18.5% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 21.9% gains and the iShares U.S. Financial Services ETF’s (IYG) 22.5% returns over the same time frame.
S&P Global's strong performance is driven by growth in its Rating segment, robust Indices performance, strategic acquisitions, increased debt issuance, and asset-linked fees. On Jul. 30, SPGI shares closed down marginally after reporting its Q2 results. The company’s revenue was $3.6 billion, topping Wall Street forecasts of $3.4 billion. The company raised its full-year 2024 guidance and expects revenue growth of 8% to 10%.
The consensus opinion on SPGI stock is bullish, with an overall “Strong Buy” rating. Of the 20 analysts covering the stock, 17 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and one recommends a “Hold.” SPGI's average analyst price target is $568.72, indicating a potential upside of 8.9% from the current levels.
On the date of publication, Rashmi Kumari 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.
