S&P Global Revenue Surges Past Estimates
S&P Global (NYSE:SPGI), the global provider of analytics, ratings, and insights, reported its earnings for the fourth quarter on Feb. 11, 2025. The company showcased a strong performance exceeding market forecasts, particularly driven by its Ratings division’s growth. S&P Global reported an adjusted EPS of $3.77, beating analyst estimates of $3.47, by about 8.6%. Revenue for the period was $3.592 billion, compared to expectations of $3.498 billion, indicating a solid quarter with a 14% year-over-year revenue growth. Overall, the results reflected a noteworthy quarter, with significant gains in its core segments.
| Metric | Q4 2024 | Q4 Estimate | Q4 2023 | Y/Y Change |
|---|---|---|---|---|
| Adjusted EPS | $3.77 | $3.47 | $3.13 | +20% |
| Revenue | $3.592B | $3.498B | $3.152B | +14% |
| Adjusted Operating Margin | 46.7% | N/A | 44.1% | +2.6 pp |
| Net Income | $880M | N/A | $579M | +52% |
Source: Analyst estimates for the quarter provided by FactSet.
About S&P Global
S&P Global is a leading provider of financial information and analytics, critical across industries. The company operates in segments such as Market Intelligence, Ratings, Commodity Insights, and Indices. Its core offering includes subscription-based models providing stable and predictable income streams.
Recently, S&P Global has focused on leveraging its vast data resources to enhance its analytics capabilities, emphasizing innovation in ESG (Environmental, Social, and Governance) indices and sustainable finance products.
Quarter Highlights
The last quarter saw S&P Global making significant strides, particularly in its Ratings segment, which recorded a 27% jump in revenue. The overall revenue for the quarter stood at $3.592 billion, bolstered by broad gains across all segments.
The company's Market Intelligence unit registered a 5% increase in revenue. It remained solid through its subscription services, reflecting ongoing demand for data and analytics. The Commodity Insights segment showed a 10% increase in revenue.
Indices revenue grew by an impressive 21%, primarily driven by asset-linked fees linked to the rise in popularity of exchange-traded funds (ETFs) and mutual funds based on its benchmarks.
Looking Ahead
For 2025, S&P Global anticipates revenue growth of 5.0% to 7.0%, with a projected GAAP diluted EPS between $14.20 and $14.45. Adjusted EPS is forecasted to be in the range of $17.00 to $17.25. The company aims to capitalize on growth opportunities, particularly in emerging markets and ESG offerings.
Investors should watch for S&P Global's continuous investment in data and technological enhancements aimed at maintaining its competitive edge. Its commitment to returning 85% or more of its adjusted free cash flow to shareholders is also a significant focus moving forward.
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JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has positions in and recommends S&P Global. The Motley Fool has a disclosure policy.
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