S&P Global Inc. Quarterly Report for Q1 Ended Mar 31, 2017

Summary

S&P Global Inc. (SPGI) reported strong financial performance for the first quarter of 2017, with total revenue increasing by 8% to $1.45 billion compared to the same period in 2016. This growth was primarily driven by robust performance in the Ratings and Indices segments, which saw increases in transaction revenues and asset-linked fees, respectively. Net income attributable to S&P Global Inc. rose significantly by 35% to $399 million, translating to a 39% increase in diluted earnings per share to $1.53. The company demonstrated effective cost management, with total expenses decreasing by 3% due to lower operating-related expenses, largely from strategic divestitures. This led to a substantial 27% increase in operating profit to $648 million. S&P Global also maintained a strong liquidity position, with cash and cash equivalents increasing to $2.41 billion. Overall, the quarter reflects positive momentum driven by core business growth and strategic operational efficiencies. The company's focus on its strategic priorities of growth and excellence, coupled with solid financial results, positions it well for continued value creation for shareholders.

Key Highlights

• 1Total revenue increased by 8% year-over-year to $1.45 billion, driven by growth in the Ratings and Indices segments.
• 2Net income attributable to S&P Global Inc. surged by 35% to $399 million.
• 3Diluted earnings per share (EPS) saw a substantial increase of 39% to $1.53.
• 4Operating profit grew by 27% to $648 million, indicating strong operational leverage and cost management.
• 5Total expenses decreased by 3% year-over-year, aided by strategic divestitures and disciplined cost control.
• 6Cash and cash equivalents increased to $2.41 billion, demonstrating a healthy liquidity position.
• 7The company announced an increase in its quarterly common stock dividend from $0.36 to $0.41 per share.

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