Summary
S&P Global Inc. (SPGI) reported its third-quarter and year-to-date results for the period ending September 30, 2017. The company demonstrated steady revenue growth, with a 5% increase for both the three and nine-month periods, reaching $1,513 million and $4,475 million, respectively. This growth was primarily driven by strong performance in the Ratings and Indices segments, fueled by increased corporate bond ratings, bank loan ratings, and higher assets under management for ETFs and mutual funds. However, operating profit saw a significant decline, down 51% for the quarter and 21% year-to-date. This reduction is largely attributable to the absence of a substantial gain on the sale of J.D. Power in the prior year's comparable periods. Excluding this one-time item, operating profit showed a healthy increase of 10% for the quarter and 14% year-to-date, reflecting the underlying operational strength. Diluted EPS decreased significantly to $1.61 for the quarter and $4.75 year-to-date, primarily due to the aforementioned gain on sale in the prior year.
Financial Highlights
51 data points| Revenue | $1.51B |
| Cost of Revenue | $419.00M |
| Gross Profit | $1.09B |
| SG&A Expenses | $399.00M |
| Operating Expenses | $864.00M |
| Operating Income | $649.00M |
| Interest Expense | $37.00M |
| Net Income | $414.00M |
| EPS (Basic) | $1.62 |
| EPS (Diluted) | $1.61 |
| Shares Outstanding (Basic) | 255.50M |
| Shares Outstanding (Diluted) | 257.90M |
Key Highlights
- 1Revenue grew 5% year-over-year for both the three and nine-month periods, reaching $1,513 million and $4,475 million, respectively, indicating consistent top-line expansion.
- 2Operating profit saw a substantial decline of 51% and 21% for the three and nine-month periods, respectively, largely due to the absence of a significant gain on the sale of J.D. Power in the prior year.
- 3Excluding the gain on sale of J.D. Power, underlying operating profit increased by 10% for the quarter and 14% year-to-date, showcasing operational improvements.
- 4The Ratings segment experienced robust revenue growth of 15% for the quarter and 17% year-to-date, driven by increased transaction revenues from corporate bond and bank loan ratings.
- 5The Indices segment also showed strong revenue growth of 14% for the quarter and 16% year-to-date, benefiting from higher assets under management in ETFs and mutual funds.
- 6Market and Commodities Intelligence segment revenue declined by 6% for the quarter and 9% year-to-date, primarily due to the disposition of non-core businesses in the prior year.
- 7The company continues to actively engage in share repurchases, with approximately $846 million spent in the first nine months of 2017, demonstrating a commitment to returning capital to shareholders.