Sarah Travers
S&P Global has announced outstanding third-quarter results for 2024, exceeding both revenue and earnings forecasts. The company reported $3.58 billion in revenue, reflecting a 16% increase year-over-year (YoY) and surpassing analysts’ expectations of $3.43 billion. Adjusted earnings per share (EPS) also beat estimates, reaching $3.89—a 21% jump from the previous year—compared to the forecasted $3.64 per share.
This growth highlights S&P Global’s ability to thrive in competitive markets and sustain momentum, even amid uncertain economic conditions. Its diverse business model, spanning across credit ratings, financial indices, and data analytics, has provided the company with the flexibility to capitalize on emerging opportunities while reinforcing its industry leadership.
Ratings and Indices Lead Revenue Growth
A key driver of S&P Global’s success this quarter was its Ratings segment, which generated $1.11 billion in revenue—a significant 36% increase YoY. This surge was largely fueled by a 60% rise in transaction-related activities, reflecting the importance of S&P Global’s credit ratings in guiding global investment decisions. The sustained demand for ratings underlines the company’s pivotal role in the financial ecosystem.
Additionally, the Indices division posted impressive results, with $416 million in revenue, up 18% from the same period last year. The 22% increase in asset-linked fees illustrates the growing demand for S&P Global’s indices as passive investing strategies gain traction. These results affirm the company’s ability to maintain relevance and appeal even in a highly competitive marketplace.
Strategic Moves to Optimize Operations and Fuel Innovation
S&P Global’s growth strategy includes streamlining operations through a series of acquisitions and divestitures. Recent sales, such as the divestiture of Fincentric and the planned sale of PrimeOne, allow the company to sharpen its focus on high-potential business areas. These moves help S&P Global allocate resources more effectively and enhance operational efficiency.
In parallel, the company has bolstered its market intelligence portfolio by acquiring Visible Alpha. This acquisition enhances S&P Global’s analytical capabilities, aligning with its long-term vision of delivering cutting-edge, data-driven solutions. Through innovation, the company aims to remain agile and responsive to evolving market trends, solidifying its competitive edge.
Focus on Shareholder Value with Aggressive Buybacks
S&P Global is reinforcing its commitment to shareholder returns by initiating a $1.5 billion accelerated share repurchase program. This buyback initiative not only reflects management’s confidence in the company’s future but also aims to deliver immediate value to shareholders by enhancing earnings per share. While dividend policies remain unchanged, the buyback signals a strategic focus on balancing short-term returns with long-term growth investments.
The company’s focus on buybacks reflects a belief in the strength of its business fundamentals, positioning it to create lasting value for investors.
Upgraded Guidance for 2024 Reflects Optimism
S&P Global has raised its full-year 2024 guidance, projecting revenue growth between 11.5% and 12.5%, compared to its earlier estimate of 8% to 10%. Adjusted EPS is now expected to fall within the range of $15.10 to $15.30, up from the previous forecast of $14.35 to $14.60.
These revised projections underscore the company’s optimism about sustaining its growth trajectory. As S&P Global continues to invest in innovation and streamline operations, it is well-positioned to maintain its momentum and navigate competitive pressures across key segments. Investors will be closely watching how the company balances future expansion with profitability in the coming quarters.
