On November 2, 2023, S&P Global Inc (SPGI, Financial) released its third quarter 2023 earnings report, demonstrating robust growth across all divisions and successful cost management. The company reported an 8% increase in revenue, with adjusted revenue, excluding Engineering Solutions (ES), increasing by 11%. GAAP diluted EPS increased by 27%, and adjusted diluted EPS increased by 10% year over year.
Financial Highlights
S&P Global Inc (SPGI, Financial) reported an increase in its operating profit margin by approximately 5 percentage points to 34.8%, primarily due to the increase in GAAP revenue. Adjusted operating profit margin increased 100 basis points to 47% primarily due to the divestiture of Engineering Solutions, growth in the Ratings division, and disciplined expense management.
GAAP diluted earnings per share increased 27% to $2.33 primarily due to a 22% increase in net income attributable to S&P Global, and a 4% reduction in diluted shares outstanding. Adjusted diluted earnings per share increased 10% to $3.21 due to a 6% increase in adjusted net income and a 4% decrease in diluted shares outstanding. Currency positively impacted adjusted diluted EPS by $0.03.
Revenue and Profit Growth
Revenue growth accelerated in every division of S&P Global Inc (SPGI, Financial). The company's revenue from subscription products increased by 9%, excluding Engineering Solutions. The company's reported operating profit margin increased approximately 5 percentage points to 34.8%, primarily due to the increase in GAAP revenue.
Our third-quarter results clearly demonstrate our ability to adapt to rapidly evolving market conditions and consistently deliver excellent results. Revenue growth accelerated in every division. We continue to invest in innovation, as evidenced by the multiple product launches in the third quarter, and we continue to demonstrate the disciplined execution on expenses that our shareholders have come to expect. We are very pleased with the results this quarter, and look forward to a strong finish to 2023." - Douglas Peterson, President and CEO
Outlook
The company raised its guidance for both GAAP diluted EPS and adjusted diluted EPS to reflect better-than-expected performance year to date. The company now expects GAAP diluted EPS in the range of $8.75 to $8.90 versus the prior range of $8.65 to $8.85. The company is increasing the guidance range for non-GAAP adjusted diluted EPS to $12.50 to $12.60 compared to prior guidance in the range of $12.35 to $12.55.
For more detailed information, please refer to the full earnings report and supplemental materials available at http://investor.spglobal.com/Quarterly-Earnings.
Explore the complete 8-K earnings release (here) from S&P Global Inc for further details.
