What is the primary reason for the reported revenue decline in the Information & Media segment?

The reported revenue decline in the Information & Media segment is primarily due to the divestiture of BusinessWeek on December 1, 2009. When this divestiture is excluded, the segment's revenue actually grew.

Why did S&P Global raise its earnings per share guidance?

S&P Global raised its EPS guidance due to its strong performance in the first nine months of 2010, indicating confidence in the company's ability to achieve higher earnings for the full year.

How should investors interpret the non-GAAP financial measures provided in the earnings release?

Investors should view the non-GAAP measures as supplemental information to provide a clearer comparison of the company's ongoing operational performance, particularly by adjusting for the impact of divested businesses. However, these measures should not replace the standard U.S. GAAP financial statements.

What is the net impact of divestitures and acquisitions on the updated EPS guidance?

The updated EPS guidance excludes $0.02 of one-time gains from past divestitures and includes a $0.02 dilution from recent acquisitions, resulting in a neutral net impact from these specific items on the guidance range itself, but the core operations are driving the upward revision.

SPGI 8-K: Earnings & Results & Regulation FD

Summary

S&P Global Inc. (SPGI) filed an 8-K on October 26, 2010, to report its third-quarter 2010 financial results. The company announced an increase in its full-year earnings per share (EPS) guidance, projecting EPS to be in the range of $2.60 to $2.65 and anticipating achievement at the higher end of this range. This updated outlook excludes $0.02 of one-time gains from divestitures but includes a $0.02 dilution from acquisitions, indicating a positive operational trend and management confidence. While the overall outlook is positive, the Information & Media segment experienced a revenue decline of 4.7% year-over-year to $227.8 million. However, excluding the divestiture of BusinessWeek, this segment's revenue would have grown by 5.1%. Similarly, the Business-to-Business Group's revenue declined by 7.1% to $204.1 million, but showed growth of 3.3% when adjusted for the BusinessWeek divestiture. These adjusted figures suggest underlying operational strength despite the reported top-line decreases attributed to prior divestitures.

Key Highlights

1S&P Global (SPGI) raised its full-year 2010 EPS guidance to $2.60-$2.65, expecting to meet the high end.
2Information & Media segment revenue declined 4.7% YoY to $227.8M, but grew 5.1% excluding the BusinessWeek divestiture.
3Business-to-Business Group revenue fell 7.1% YoY to $204.1M, but grew 3.3% excluding the BusinessWeek divestiture.
4The company provided non-GAAP financial measures for better operational comparison, adjusting for divestitures.
5The updated guidance excludes $0.02 from divestiture gains and includes $0.02 dilution from acquisitions.
6The earnings release was furnished on October 26, 2010, for the quarter ended September 30, 2010.

S&P Global Inc. 8-K Report, Financial Results (Oct 26, 2010)

Summary

Key Highlights

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