Summary
The McGraw-Hill Companies (now S&P Global Inc.) reported its second-quarter 2003 results on July 29, 2003. The company achieved a 7.2% increase in diluted earnings per share (EPS) from continuing operations, reaching $0.74, which exceeded the First Call consensus forecast of $0.73. This performance was driven by solid global gains in its Financial Services segment, growth in college and university sales within its Education division, and effective cost containment measures, aided by favorable foreign exchange rates. Overall operating revenue for the quarter saw a 1.3% increase to $1.2 billion. While the Financial Services segment demonstrated robust growth, particularly in ratings markets and structured finance, the Education and Information & Media Services segments experienced revenue declines. The company maintained its positive outlook for the full year, guiding for a 7-9% increase in EPS, indicating confidence in continued growth despite some economic uncertainties and softness in advertising markets.
Key Highlights
- 1Diluted EPS from continuing operations increased by 7.2% to $0.74 in Q2 2003, surpassing analyst expectations.
- 2Total operating revenue grew by 1.3% to $1.2 billion for the second quarter.
- 3The Financial Services segment was a key driver, with revenue up 9.7% and operating profit up 12.3% due to strong performance in ratings and structured finance.
- 4McGraw-Hill Education segment revenue decreased by 2.6% and operating profit declined by 15.0%, impacted by tougher year-over-year comparisons and softness in some educational markets.
- 5Information and Media Services segment revenue declined by 4.2%, with softness in advertising affecting BusinessWeek and other publications.
- 6The company divested S&P ComStock in February 2003, impacting year-over-year net income comparisons but contributing positively to the first half's net income due to a gain on sale.
- 7Full-year 2003 EPS growth guidance remains at 7-9%, reflecting confidence in sustained performance.