On July 30, 2024, S&P Global Inc (SPGI, Financial) released its 8-K filing reporting impressive second-quarter results for 2024. The company, known for providing essential data and benchmarks to capital and commodity market participants, reported significant growth in both revenue and earnings.
Company Overview
S&P Global Inc (SPGI, Financial) is a leading provider of data and benchmarks to capital and commodity market participants. Its ratings business is the largest credit rating agency globally, and its market intelligence segment, which offers desktop, data, and advisory solutions, is the largest by revenue. Other segments include commodity insights, mobility, and indexes.
Q2 2024 Financial Performance
For the second quarter of 2024, S&P Global Inc (SPGI, Financial) reported:
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Revenue | $3.549 billion | $3.113 billion | +14% |
| GAAP Net Income | $1.011 billion | $510 million | +98% |
| GAAP Diluted EPS | $3.23 | $1.60 | +102% |
| Adjusted Net Income | $1.267 billion | $998 million | +27% |
| Adjusted Diluted EPS | $4.04 | $3.11 | +30% |
Key Financial Metrics and Achievements
S&P Global Inc (SPGI, Financial) achieved record quarterly revenue of $3.549 billion, a 14% increase year-over-year, driven by strong performance in its Ratings and Indices divisions. Excluding the impact of Engineering Solutions, revenue growth would have been 16% year-over-year. The company's GAAP operating margin increased by over 1,100 basis points to 40.9%, while the adjusted operating margin rose by 450 basis points to 50.7%.
The company's GAAP diluted earnings per share (EPS) surged by 102% to $3.23, primarily due to a 98% increase in net income and a 2% reduction in diluted shares outstanding. Adjusted diluted EPS increased by 30% to $4.04, driven by a 27% increase in adjusted net income and a 2% decrease in diluted shares outstanding.
Income Statement Highlights
Second-quarter revenue increased by 14%, with subscription products contributing an 8% increase, excluding Engineering Solutions. The company's operating profit margin saw significant improvement, with GAAP operating profit margin increasing by over 1,100 basis points to 40.9%, and adjusted operating profit margin rising by 450 basis points to 50.7%.
Balance Sheet and Cash Flow
S&P Global Inc (SPGI, Financial) expects 2024 cash provided by operating activities, less capital expenditures and distributions to noncontrolling interest holders, to be approximately $4.4 billion, up from the prior expectation of $4.2 billion. Adjusted free cash flow, excluding certain items, is expected to be around $4.7 billion, compared to prior guidance of $4.5 billion.
Commentary and Future Outlook
"Our second quarter results demonstrate the power of S&P Global's strategy and the ability to quickly respond to dynamic markets and create value for our customers. In the current uncertain macro landscape, we delivered record revenue, significant operating margin expansion on both a GAAP and adjusted basis, and significant outperformance against our internal expectations on both GAAP and adjusted EPS." - Douglas Peterson, President and CEO
Looking ahead, S&P Global Inc (SPGI, Financial) has raised its full-year 2024 guidance, now expecting revenue growth of 8.0% - 10.0%, GAAP diluted EPS in the range of $11.15 - $11.40, and adjusted diluted EPS in the range of $14.35 - $14.60. The company also plans to execute additional accelerated share repurchases totaling $1.5 billion in the coming weeks.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from S&P Global Inc for further details.
