Summary
S&P Global Inc. (formerly McGraw Hill Financial, Inc.) reported a mixed financial performance for the nine months ended September 30, 2014. While consolidated revenue saw a modest increase of 8% to $3.76 billion, net income attributable to McGraw Hill Financial, Inc. common shareholders decreased significantly by 39% to $731 million, largely impacted by a substantial gain from the sale of McGraw Hill Education in the prior year period. The company continued its strategic portfolio rationalization, announcing the agreement to sell McGraw Hill Construction, which was reclassified as held for sale. The core business segments showed varying performance. S&P Ratings revenue grew but operating profit declined due to a significant $60 million charge for regulatory matters, while S&P Capital IQ and S&P Dow Jones Indices demonstrated solid revenue and operating profit growth. The Commodities & Commercial Markets segment saw revenue growth but a decline in operating profit for the quarter, impacted by restructuring charges and a prior year gain on sale. Key financial activities included a continued focus on capital allocation through share repurchases and a quarterly dividend increase. The company maintained a strong liquidity position with a notable increase in cash and equivalents and a healthy credit facility. Investors should note the ongoing legal and regulatory proceedings, particularly those affecting S&P Ratings, which pose potential financial and operational risks.
Financial Highlights
50 data points| Revenue | $1.26B |
| Cost of Revenue | $402.00M |
| Gross Profit | $861.00M |
| SG&A Expenses | $462.00M |
| Operating Expenses | $897.00M |
| Operating Income | $366.00M |
| Interest Expense | $12.00M |
| Net Income | $190.00M |
| EPS (Basic) | $0.70 |
| EPS (Diluted) | $0.69 |
| Shares Outstanding (Basic) | 270.90M |
| Shares Outstanding (Diluted) | 275.40M |
Key Highlights
- 1Consolidated revenue increased by 8% to $3.76 billion for the nine months ended September 30, 2014.
- 2Net income attributable to common shareholders decreased by 39% to $731 million, impacted by the prior year's sale of McGraw Hill Education.
- 3The company announced an agreement to sell McGraw Hill Construction, reclassifying it as discontinued operations.
- 4S&P Ratings experienced revenue growth but a decline in operating profit due to a $60 million regulatory charge.
- 5S&P Capital IQ and S&P Dow Jones Indices showed strong revenue and operating profit growth across both quarterly and year-to-date periods.
- 6The company repurchased $362 million of its common stock and increased its quarterly dividend to $0.30 per share during the nine-month period.
- 7Cash and equivalents increased to $1.92 billion, indicating a strong liquidity position.