Financial intelligence company S&P Global (NYSE: SPGI) will be announcing earnings results this Tuesday before market open. Here’s what investors should know.
S&P Global missed analysts’ revenue expectations last quarter, reporting revenues of $3.68 billion, up 10.9% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates and full-year EPS guidance slightly missing analysts’ expectations.
Is S&P Global a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting S&P Global’s revenue to grow 5.9% year on year, a reversal from the 3.7% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. S&P Global has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at S&P Global’s peers in the financial exchanges & data segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Nasdaq delivered year-on-year revenue growth of 12.6%, beating analysts’ expectations by 1.1%, and CME Group reported revenues up 13%, topping estimates by 0.8%. Nasdaq traded up 6.7% following the results while CME Group was also up 3.6%.
Read our full analysis of Nasdaq’s results here and CME Group’s results here.
Investors in the financial exchanges & data segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. S&P Global is up 13.3% during the same time and is heading into earnings with an average analyst price target of $514.05 (compared to the current share price of $448.69).
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