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Why Is S&P Global (SPGI) Up 0.7% Since Last Earnings Report?

[Published: 2019-03-09T14:31:02Z] [Author: ] [Powered by:]

A month has gone by since the last earnings report for S&P Global (SPGI). Shares have added about 0.7% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is S&P Global due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Earnings Beat at S&P Global in Q4

S&P Global reported mixed fourth-quarter 2018 results wherein the company’s earnings surpassed the Zacks Consensus Estimate but revenues missed the same.

Adjusted earnings per share of $2.22 beat the Zacks Consensus Estimate by 2 cents and increased 20% year over year. The bottom line benefited from productivity improvements, lower effective tax rate (as a result of U.S. tax reform) and reduction in shares outstanding. 

Revenues of $1.54 billion lagged the consensus mark by $69.9 million and decreased 3.3% year over year on a reported basis and 4% organically. The top line was hurt by a decline in Ratings revenues, which partially offset the increase in revenues from the company’s other three segments - Market Intelligence, Platts and S&P Dow Jones Indices.