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Is a Beat in the Cards for S&P Global (SPGI) in Q3 Earnings?

Zacks Equity Research

S&P Global Inc. SPGI is scheduled to release third-quarter 2019 results on Oct 29, before market open.

While the company’s top line is likely to have benefited from solid segmental performance, the bottom line is expected to have performed well on the back of revenue growth and benefits of productivity initiatives.

So far this year, shares of S&P Global have gained 46.1%, outperforming 36.9% rise of the industry it belongs to and 18.7% rise of the Zacks S&P 500 composite.

 

Let’s check out the expectations in detail.

Segmental Growth to Drive Top Line

Strength across all the segments — S&P Global Ratings (“Ratings”), S&P Global Market Intelligence ("Market Intelligence"), S&P Global Platts ("Platts") and S&P Dow Jones Indices ("Indices") — is likely to have driven the company’s revenues in the third quarter. The Zacks Consensus Estimate for revenues stands at $1.66 billion, indicating growth of 7.1% from the year-ago period reported figure. In second-quarter 2019, total revenues of $1.70 billion increased 6% year over year.

Segment-wise, Ratings revenues are likely to have performed well on the back of solid U.S. high-yield issuance. Market Intelligence revenues are likely to have gained from growth in Desktop, Data Management Solutions, and Credit Risk Solutions. Platts revenues might have benefited from core subscription business and Global Trading Services. Indices revenues are likely to have been aided by gain in asset-linked fees and increase in data & custom subscriptions.

S&P Global Inc. Revenue (TTM)

 

S&P Global Inc. Revenue (TTM)

S&P Global Inc. revenue-ttm | S&P Global Inc. Quote

Bottom Line to Improve Year Over Year

Revenue growth and benefits of productivity initiativesare likely to have boosted S&P Global’s third-quarter 2019 earnings. The Zacks Consensus Estimate for earnings is pegged at $2.33 per share, indicating growth of 10.4% from the year-ago period reported figure. In second-quarter 2019, adjusted earnings of $2.43 per share increased 12% year over year.

What Our Model Says

Our proven model predicts an earnings beat for S&P Global this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

S&P Global has an Earnings ESP of +1.72% and a Zacks Rank #2.

S&P Global Inc. Price and EPS Surprise

 

S&P Global Inc. Price and EPS Surprise

S&P Global Inc. price-eps-surprise | S&P Global Inc. Quote

Other Stocks to Consider

Here are a few other stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these too have the right combination of elements to beat on third-quarter 2019 earnings:

Verisk VRSK has an Earnings ESP of +2.22% and a Zacks Rank #3. The company is slated to report results on Oct 29. You can see the complete list of today’s Zacks #1 Rank stocks here.

WEX Inc. WEX has an Earnings ESP of +1.24% and a Zacks Rank #3. The company is slated to report results on Oct 31.

Fidelity National Information Services, Inc. FIS has an Earnings ESP of +0.13% and a Zacks Rank #3. The company is slated to release results on Nov 5.

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Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report
 
S&P Global Inc. (SPGI) : Free Stock Analysis Report
 
WEX Inc. (WEX) : Free Stock Analysis Report
 
Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report
 
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