2023-04-27 09:26:56 ET
S&P Global ( NYSE: SPGI ) stock jumped 5.0% in Thursday premarket trading after Q1 earnings and revenue exceeded Wall Street expectations and the company announced an upcoming stock buyback. In Q1 results, its Market Intelligence and Commodity Insights units showed strong Q/Q and Y/Y growth.
The company said an additional $1B accelerated share repurchase program is expected to launch in coming weeks, after having completed a $500M ASR in Q1.
SPGI also reaffirmed guidance for 2023 adjusted EPS at $12.35-$12.55 and revenue growth of 4%-6%. Non-GAAP adjusted free cash flow is now expected at $4.2B-$4.3B, down from its previous range of $4.3B-$4.4B, due to a net cash tax impact to capitalize R&D costs.
With the quarter's results, S&P Global ( SPGI ) is close to lapping its acquisition of IHS Markit, which was completed March 1, 2022. As such, adjusted results are compared with year-ago proforma figures.
Q1 adjusted EPS of $3.15, topping the $2.92 consensus, rose from $2.54 in Q4 2022 and from $2.89 in Q1 2022.
Reported revenue of $3.16, exceeding the $3.06B consensus, increased from $2.94B in the prior quarter and $2.39B in the year-ago period.
Q1 expenses declined to $2.08B from $2.23B in Q4 2022 and increased from $1.84B in Q1 2022.
Adjusted operating profit of $1.46B climbed from $1.21B in the prior quarter and from $1.39B in the year-ago quarter.
Q1 adjusted revenue, by segment:
- Market Intelligence — $1.07B vs. $1.04B in Q4 2022 and $727M in Q1 2022
- Ratings — $824M vs. $705M in the prior quarter and $868M in the year-ago quarter
- Commodity Insights — $508M vs. $451M in Q4 2022 and $363M in Q1 2022
- Mobility — $358M vs. $345M in the prior quarter and $115M in the year-ago period
- Indices — $341M vs. $344M in Q4 2022 and $322M in Q1 2022.
- Engineering Solutions — $100M vs. $99M in prior quarter and $33M a year ago.
Earlier, S&P Global ( SPGI ) non-GAAP EPS of $3.15 beats by $0.23, revenue of $3.16B beats by $100M
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- Behind Its Pro Forma 2022 Mess Hides a Strong Buy
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S&P Global Q1 earnings beat; announces $1B stock buyback