Summary
S&P Global Inc. (SPGI) reported its first-quarter 2019 financial results, showing relatively stable revenue of $1.571 billion, a slight increase from $1.567 billion in the prior year period. Operating profit saw a minor decrease to $705 million from $711 million, impacted by higher amortization expenses and Kensho retention costs, though underlying operational improvements were noted. Net income attributable to S&P Global Inc. decreased by 16% to $410 million, translating to diluted EPS of $1.65, down from $1.93 in Q1 2018. This decline was primarily influenced by a significant pension settlement charge of $113 million incurred in the current quarter. The company continued its capital return strategy, repurchasing shares worth $644 million and increasing its quarterly dividend to $0.57 per share. Segment performance showed mixed results, with Market Intelligence and Platts demonstrating solid revenue growth, while Ratings experienced a decline, primarily due to lower bank loan and corporate bond ratings revenue. Indices revenue saw a slight increase, bolstered by a recent intellectual property buyout. The company remains focused on its strategic priorities across finance, customer engagement, operations, and people, aiming for continued revenue growth and margin expansion.
Financial Highlights
51 data points| Revenue | $1.57B |
| Cost of Revenue | $473.00M |
| Gross Profit | $1.10B |
| SG&A Expenses | $341.00M |
| Operating Expenses | $866.00M |
| Operating Income | $705.00M |
| Net Income | $410.00M |
| EPS (Basic) | $1.66 |
| EPS (Diluted) | $1.65 |
| Shares Outstanding (Basic) | 246.70M |
| Shares Outstanding (Diluted) | 248.30M |
Key Highlights
- 1Revenue remained flat year-over-year at $1.57 billion, demonstrating stability.
- 2Operating profit decreased slightly by 1% to $705 million, impacted by increased amortization and specific charges.
- 3Net income attributable to S&P Global Inc. declined 16% to $410 million, largely due to a $113 million pension settlement charge.
- 4Diluted EPS decreased by 14% to $1.65 from $1.93 in the prior year period.
- 5Strong share repurchases continued, with $644 million deployed in the quarter, alongside an increased dividend payment.
- 6Market Intelligence and Platts segments showed robust revenue growth, while Ratings segment revenue declined.
- 7The company adopted the new lease accounting standard (ASC 842) effective January 1, 2019, which materially impacted the balance sheet but not the income statement or cash flows.