Summary
S&P Global Inc. (formerly The McGraw-Hill Companies, Inc.) filed an 8-K on April 25, 2006, to furnish its earnings release for the first quarter ended March 31, 2006. The company reported diluted earnings per share from continuing operations of $0.20, which included a $0.04 one-time charge related to the elimination of its stock option program and an incremental $0.04 for stock-based compensation. These non-GAAP adjustments impacted the reported EPS. The company also highlighted strong performance in its Financial Services segment, with a reported revenue increase of 9.6%. When excluding specific divested and acquired businesses, the non-GAAP revenue growth for this segment was a robust 13.7%. Key drivers of this growth were structured finance (52.0%) and corporate and government ratings (22.9%). Despite the charges, the company reiterated its full-year 2006 earnings per share guidance of $2.36 to $2.41, excluding the impact of stock option expensing.
Key Highlights
- 1Reported Q1 2006 diluted EPS from continuing operations of $0.20.
- 2Included a $0.04 one-time charge for stock option program elimination and $0.04 for incremental stock-based compensation.
- 3Financial Services segment revenue increased 9.6% year-over-year.
- 4Excluding specific acquisitions and divestitures, Financial Services non-GAAP revenue grew 13.7%.
- 5Structured finance and corporate/government ratings were key drivers of Financial Services growth.
- 6Reaffirmed 2006 full-year EPS guidance of $2.36 - $2.41, excluding stock option expensing.
- 7The filing was furnished to provide additional context on financial results and facilitate period-to-period comparisons.