Summary
S&P Global Inc. (SPGI) reported solid financial results for the third quarter and first nine months of 2018, demonstrating continued revenue growth and profitability. Revenue increased by 2% for the quarter and 6% year-to-date, driven by strong performance across its segments, particularly Market Intelligence and Indices. Net income attributable to S&P Global Inc. saw a significant increase of 20% for the quarter and 17% year-to-date, reflecting improved operational efficiency and the benefits of the Tax Cuts and Jobs Act. The company continued to execute its strategic priorities, including investments in technology and acquisitions, such as the Kensho acquisition. Shareholder value was enhanced through increased dividends and substantial share repurchases. Despite some headwinds like foreign exchange fluctuations and increased expenses in certain areas, S&P Global's diversified business model and strong market positions across its Ratings, Market Intelligence, Platts, and Indices segments position it well for continued growth and value creation.
Financial Highlights
51 data points| Revenue | $1.55B |
| Cost of Revenue | $410.00M |
| Gross Profit | $1.14B |
| SG&A Expenses | $379.00M |
| Operating Expenses | $842.00M |
| Operating Income | $704.00M |
| Net Income | $495.00M |
| EPS (Basic) | $1.97 |
| EPS (Diluted) | $1.95 |
| Shares Outstanding (Basic) | 251.30M |
| Shares Outstanding (Diluted) | 253.50M |
Key Highlights
- 1Revenue increased by 2% year-over-year for the three months ended September 30, 2018, reaching $1,546 million, and by 6% for the nine months ended September 30, 2018, reaching $4,721 million.
- 2Net income attributable to S&P Global Inc. grew by 20% for the three months ended September 30, 2018, to $495 million, and by 17% for the nine months ended September 30, 2018, to $1,447 million.
- 3Diluted earnings per share increased by 22% to $1.95 for the three months and by 20% to $5.70 for the nine months, demonstrating strong bottom-line performance.
- 4The company successfully integrated the acquisition of Kensho Technologies Inc. in April 2018, which is expected to enhance its technology capabilities.
- 5Operating profit increased by 8% for the quarter and 7% year-to-date, indicating improved operational leverage and efficiency.
- 6The company returned significant capital to shareholders through dividends ($379 million for the nine months) and share repurchases ($1,108 million for the nine months), including the completion of a $1 billion accelerated share repurchase program.
- 7The effective income tax rate decreased significantly in 2018 (20.4% for the quarter, 21.9% for the nine months) compared to 2017 (27.3% for the quarter, 28.5% for the nine months), primarily due to the Tax Cuts and Jobs Act.