2023-07-27 08:59:27 ET
S&P Global ( NYSE: SPGI ) stock slid 5.5% in Thursday premarket trading as its earnings for the second quarter missed the average analyst estimate for the first time since the same period a year ago and decreased from the first quarter. Revenue, although surpassing expectations, also pulled back during the quarter.
The company is reaffirming its outlook for 2023 EPS at $12.35-$12.55, revenue growth of 4%-6%, operating profit margin of 45.5%-46.5%, and free cash flow of $4.2B-$4.3B, all on an adjusted basis.
Note that adjusted results for the quarter are compared with year-ago pro forma figures with SPGI close to lapping its acquisition of IHS Markit, which was completed on March 1 of last year.
Q2 adjusted EPS of $3.12, a hair under the $3.13 average analyst estimate, slipped from $3.15 in Q1 and climbed from $2.81 in the year-earlier period.
Revenue of $3.10B, vs. $3.06B expected, fell from $3.16B in Q2 and advanced from $2.99B in Q2 2022.
Expenses of $2.08B were virtually unchanged from Q1 and from a year before.
Adjusted operating profit came in at $1.44B comp$1.ared with $1.46B in Q1 and $1.40B in Q2 2022.
Q2 adjusted revenue, by segment:
- Market Intelligence -- $1.08B vs. $1.07B in the prior quarter and $1.03B a year earlier.
- Ratings -- $851M vs. $842M in Q1 and $796M in Q2 2022.
- Commodity Insights -- $462M vs. $508M in Q1 and $438M in Q2 2022.
- Mobility -- $369M vs. $358M in Q1 and $337M in Q2 2022.
- Indices -- $348M vs. $341M in Q1 and $339M in Q2 2022.
- Engineering Solutions -- $33M vs. $100M in Q1 and $96M in Q2 2022.
Earlier, SPGI Non-GAAP EPS of $3.12 misses by $0.01, revenue of $3.1B beats by $40M.
More on S&P Global:
- SA's Quant system rates SPGI a Hold
- S&P Global: High Quality Has Its Price
- S&P Global nabs Overweight rating at Wells Fargo
For further details see:
S&P Global posts slight Q2 earnings miss, reaffirms 2023 guidance