Summary
S&P Global Inc. (SPGI), formerly McGraw Hill Financial, Inc., reported strong financial performance for the six months ended June 30, 2015. Revenue increased by 5% year-over-year to $2.615 billion, driven by growth across all major segments, particularly S&P Capital IQ, S&P Dow Jones Indices, and Commodities & Commercial Markets (C&C). Operating profit saw a substantial 21% increase, reaching $1.083 billion, reflecting effective cost management and operational efficiencies, including benefits from prior restructuring actions and legal insurance recoveries. The company also demonstrated robust earnings per share growth from continuing operations, with diluted EPS rising to $2.38 from $1.91 in the prior-year period. Financially, SPGI strengthened its liquidity by issuing $700 million in senior notes and entering into a new $1.2 billion credit facility. The company continues to return capital to shareholders through dividends and share repurchases, while also investing in strategic growth initiatives, highlighted by the pending acquisition of SNL Financial for $2.225 billion, which is expected to significantly enhance its data and analytics capabilities. Despite a significant use of cash in operating activities during the first half of 2015, largely due to the payment of legal and regulatory settlements, the company's overall financial health remains strong. Management is focused on creating growth through innovation and customer focus, and driving performance through operational excellence, positioning SPGI for continued success in its core markets.
Financial Highlights
50 data points| Revenue | $1.34B |
| Cost of Revenue | $412.00M |
| Gross Profit | $930.00M |
| SG&A Expenses | $326.00M |
| Operating Expenses | $771.00M |
| Operating Income | $582.00M |
| Interest Expense | $16.00M |
| Net Income | $353.00M |
| EPS (Basic) | $1.29 |
| EPS (Diluted) | $1.28 |
| Shares Outstanding (Basic) | 273.10M |
| Shares Outstanding (Diluted) | 275.70M |
Key Highlights
- 1Revenue increased 5% to $2.615 billion for the first six months of 2015 compared to the prior year.
- 2Operating profit increased 21% to $1.083 billion for the first six months of 2015, demonstrating strong operational leverage.
- 3Diluted earnings per share from continuing operations grew to $2.38, a 25% increase year-over-year.
- 4The company issued $700 million in 4.0% senior notes due 2025 and secured a new $1.2 billion credit facility to enhance liquidity.
- 5Despite a large payment for legal and regulatory settlements impacting operating cash flow, the company maintained a strong liquidity position.
- 6A significant acquisition of SNL Financial for $2.225 billion was announced on July 24, 2015, pending regulatory approval, to expand data and analytics offerings.
- 7All reportable segments (S&P Ratings, S&P Capital IQ, S&P Dow Jones Indices, C&C) showed revenue growth for the six-month period.