What were the key drivers of revenue growth in Q1 2016?

Revenue growth was primarily driven by increases at S&P Global Market Intelligence, C&C, and S&P DJ Indices. Acquisitions like SNL Financial and Used Car Guide, along with organic growth from annualized contract values and continued demand for Platts' content, were key contributors. Growth in S&P Global Market Intelligence was particularly strong due to the SNL acquisition and S&P Capital IQ Desktop performance.

What is the status of the divestitures announced by the company?

In April 2016, S&P Global announced an agreement to sell J.D. Power for $1.1 billion. Additionally, in February 2016, agreements were made to sell SPSE and CMA within the S&P Global Market Intelligence segment. The assets and liabilities of these businesses have been classified as held for sale, indicating the company's active portfolio management strategy.

Are there any significant legal or regulatory issues that investors should be aware of?

The company is involved in ongoing legal and regulatory matters, particularly concerning S&P Ratings. These include financial crisis litigation, SEC inquiries, and a prosecutorial proceeding in Italy. A shareholder derivative action has also been filed. While the company believes it has defenses, these matters present uncertainty and could potentially impact financial condition or cash flows.

How did the company's share repurchase program perform during the quarter?

During the first quarter of 2016, S&P Global utilized $226 million to repurchase 2.2 million shares of its common stock, a significant increase from the $110 million spent in the prior year's first quarter. The company continues to have approximately 33.3 million shares available under its existing repurchase program.

SPGI 10-Q Quarterly Report Q1 FY2016 — Revenue, Net Income, EPS

Summary

S&P Global Inc. (SPGI) reported a 5% increase in revenue to $1,341 million for the first quarter of 2016 compared to the same period in 2015. This growth was primarily driven by strong performance in its S&P Global Market Intelligence, S&P Dow Jones Indices, and Commodities & Commercial Markets segments, fueled by acquisitions and organic growth. Despite a 2% increase in operating profit to $512 million, the company's net income attributable to McGraw Hill Financial, Inc. saw a slight decrease of 3% to $294 million. The company is actively managing its portfolio, announcing the sale of J.D. Power and other businesses in early 2016. These strategic divestitures, along with ongoing investments in its core data and analytics offerings, indicate a focus on streamlining operations and enhancing future profitability. Investors should note the ongoing legal and regulatory matters, particularly those related to S&P Ratings, which continue to present potential risks.

Financial Highlights

50 data points

Beta

Revenue

$1.34B

0.7% Gross Margin

Net Income

$294.00M

0.2% Net Margin

EPS (Diluted)

$1.10

Total Assets

$8.26B

Cash & Equivalents

$1.60B

Free Cash Flow

$185.00M

Financial Statements

Beta

Revenue	$1.34B
Cost of Revenue	$453.00M
Gross Profit	$888.00M
SG&A Expenses	$334.00M
Operating Expenses	$829.00M
Operating Income	$512.00M
Interest Expense	$40.00M
Net Income	$294.00M
EPS (Basic)	$1.11
EPS (Diluted)	$1.10
Shares Outstanding (Basic)	265.00M
Shares Outstanding (Diluted)	267.20M

Key Highlights

1Revenue increased by 5% to $1,341 million, driven by growth in S&P Global Market Intelligence, S&P DJ Indices, and C&C segments.
2Operating profit rose by 2% to $512 million, reflecting revenue growth partially offset by increased expenses, including a technology impairment charge.
3Net income attributable to McGraw Hill Financial, Inc. decreased by 3% to $294 million, with diluted EPS remaining flat at $1.10.
4The company announced the sale of J.D. Power for $1.1 billion and other businesses, classifying them as held for sale.
5Strategic acquisitions, such as SNL Financial and Used Car Guide, contributed significantly to revenue growth in the reported period.
6Shareholder returns included dividends paid ($96 million) and significant share repurchases ($226 million).
7The company highlighted its commitment to strategic priorities of 'Creating Growth' and 'Driving Performance'.

S&P Global Inc. Quarterly Report for Q1 Ended Mar 31, 2016

Summary

Financial Highlights

Key Highlights

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