Summary
S&P Global Inc. (SPGI), formerly McGraw Hill Financial, Inc., reported strong performance for the nine months ended September 30, 2013, driven by its core analytics and content businesses. The company successfully divested its McGraw-Hill Education segment, generating a significant after-tax gain of $592 million, which bolstered net income. Revenue saw a healthy increase of 12% year-over-year, primarily fueled by growth in S&P Ratings, S&P Capital IQ, and S&P Dow Jones Indices segments. Operating profit increased by 30% to $1,121 million, demonstrating effective cost management and operational efficiencies. Diluted earnings per share from continuing operations saw a substantial rise of 33% to $2.27. The company also actively managed its capital structure, repurchasing significant amounts of its own stock and increasing its dividend payout. These factors indicate a positive trajectory for the company, highlighting its strategic focus on its high-value information and analytics services.
Financial Highlights
50 data points| Revenue | $1.15B |
| Cost of Revenue | $371.00M |
| Gross Profit | $781.00M |
| SG&A Expenses | $377.00M |
| Operating Expenses | $781.00M |
| Operating Income | $395.00M |
| Interest Expense | $14.00M |
| Net Income | $215.00M |
| EPS (Basic) | $0.79 |
| EPS (Diluted) | $0.77 |
| Shares Outstanding (Basic) | 272.80M |
| Shares Outstanding (Diluted) | 278.80M |
Key Highlights
- 1Revenue increased by 12% to $3,625 million for the nine months ended September 30, 2013, compared to the prior year.
- 2Operating profit rose by 30% to $1,121 million, showcasing improved profitability.
- 3Income from continuing operations grew by 38% to $712 million.
- 4Diluted EPS from continuing operations increased by 33% to $2.27.
- 5The company reported a significant after-tax gain of $592 million from the sale of McGraw-Hill Education.
- 6Significant share repurchases totaling $850 million were executed in the nine-month period.
- 7The company increased its quarterly dividend to $0.28 per share.