For the quarter ended December 2023, S&P Global (SPGI) reported revenue of $3.15 billion, up 7.3% over the same period last year. EPS came in at $3.13, compared to $2.54 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $3.14 billion, representing a surprise of +0.48%. The company delivered an EPS surprise of -0.63%, with the consensus EPS estimate being $3.15.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how th ...

Business Segments - S&P Global operates five main business segments: Market Intelligence, Ratings, Commodity Insights, Mobility, and Indices[19]. - Market Intelligence's subscription revenue is derived from data distribution, valuation services, and analytics, contributing significantly to its overall revenue[21]. - Ratings provides credit ratings and analytics, serving a wide range of clients including investors and corporations, with a strong emphasis on transaction and non-transaction revenue streams[25]. - Commodity Insights generates revenue through subscription services, price assessments, and consulting, focusing on the energy and commodity markets[28]. - Mobility offers solutions across the automotive value chain, with revenue primarily from subscription services and one-time transactional sales[30]. - Indices earns revenue from asset-linked fees, sales-usage based royalties, and data subscription arrangements, supporting investment advisors and institutional investors[32]. Employee Management and Development - As of December 31, 2023, S&P Global employed approximately 40,450 permanent employees globally, with a significant presence in Asia and North America[36]. - The company emphasizes a "people first" approach to human capital management, focusing on diversity, equity, and inclusion initiatives[41]. - S&P Global's commitment to employee development includes personalized learning programs and competitive compensation strategies to attract and retain talent[45]. - The company offers a parental leave policy of 26 weeks to bond with new arrivals, along with 10 days of paid leave per calendar year for caring for a close relative with a serious illness[53]. - The company has introduced a well-being reimbursement program for team members to cover wellness-related activities, providing flexibility to meet specific wellness needs[53]. - The company emphasizes a "people first" philosophy, expanding global benefits offerings to enhance employee engagement and retention[52]. - The company invests in leadership development programs to strengthen its executive talent pipeline and foster leadership excellence across all levels[48]. - The company provides internal technology training programs to enhance workforce skills and accelerate problem-solving capabilities[48]. - The annual VIBE employee engagement survey tracks progress in workplace pride and satisfaction, with results impacting management accountability and incentive outcomes[54]. - The company has implemented a flexible return-to-office model called anchor-flex, promoting health and safety while allowing for virtual work options[47]. Financial Performance - Revenue for the year ended December 31, 2023, was $12,497 million, representing a 12% increase from $11,181 million in 2022[162]. - Operating profit decreased to $4,020 million in 2023, down 19% from $4,944 million in 2022, primarily due to higher acquisition-related costs and merger expenses[162]. - Diluted earnings per share from net income fell to $8.23 in 2023, a decrease of 19% compared to $10.20 in 2022[162]. - The company returned approximately $18.2 billion to shareholders over the past three years through share repurchases of $15.3 billion and dividends of $2.9 billion[161]. - Subscription revenue grew to $6,963 million in 2023, up 12% from $6,201 million in 2022, driven by the merger with IHS Markit[180]. - Non-subscription/transaction revenue increased to $2,093 million, a 16% rise from $1,807 million in 2022, influenced by higher corporate bond ratings revenue[180]. - U.S. revenue accounted for $7,542 million, representing 60% of total revenue, with a 13% increase from $6,653 million in 2022[178]. - International revenue totaled $4,955 million, a 9% increase from $4,528 million in 2022, maintaining a 40% share of total revenue[178]. - Total operating-related expenses rose to $4,090 million, a 12% increase from $3,649 million in 2022, primarily due to the IHS Markit merger[185]. - Selling and general expenses decreased by 7% to $4,141 million, influenced by higher costs in the previous year related to the IHS Markit merger[187]. Risks and Challenges - Cybersecurity remains a significant risk, with the company facing increasing threats that could adversely affect its business operations and customer trust[59]. - Increased availability of free or inexpensive information sources may reduce demand for the company's products, potentially having a material adverse effect on its business and financial condition[67]. - The company has established a comprehensive AI strategy and made significant investments in AI initiatives, but the rapidly evolving AI landscape poses risks that could adversely impact its ability to compete and protect its data[68]. - Social and ethical issues related to AI technologies could harm the company's reputation and marketability of its products, leading to potential legal liabilities[69]. - Transitioning to a cloud-based infrastructure involves substantial expenditures and risks, including potential disruptions to normal operations and loss of information[69]. - The company faces numerous legal and regulatory risks, including ongoing investigations and inquiries that could impose additional expenses and negatively impact cash flows[76]. - Changes in global privacy and data protection regulations may adversely impact the company's ability to collect and use data, affecting financial results[79]. - The complexity of managing intellectual property rights, especially in the context of AI, could impact the company's competitive position and revenue generation[74]. - Future legislation and regulatory reforms could materially affect the company's operations and results, with uncertainties regarding their impact on compliance obligations[80]. - The company is subject to numerous U.S. and international privacy and data protection laws, with potential penalties under the EU's GDPR reaching up to €20 million or 4% of worldwide revenue[80]. Acquisitions and Market Expansion - Recent acquisitions include ChartIQ, TruSight Solutions LLC, and Market Scan Information Systems, aimed at strengthening the business, but integration challenges may arise[94]. - The acquisition of ChartIQ in January 2023 enhances the S&P Capital IQ Pro platform with advanced charting capabilities[214]. - The acquisition of TruSight in January 2023 expands S&P Global's vendor risk management solutions[215]. - The company is expanding into new markets, including sustainability and private markets, but there is no assurance of success, which could impact financial performance[108]. Shareholder Returns - The company reported a quarterly dividend of $0.90 per share in 2023, totaling $3.60 for the year, compared to $3.32 in 2022[143]. - The company repurchased 2.8 million shares during Q4 2023 under the 2022 Repurchase Program, with 18.7 million shares remaining authorized for repurchase[146]. - The average price paid per share for repurchases in Q4 2023 was $430.63, with a total of 2,858,436 shares repurchased during the quarter[149]. Operational Challenges - The company faces challenges in attracting and retaining key qualified personnel due to intense competition, which could adversely affect its ability to develop and deliver successful products and services[90]. - Economic volatility, including military conflicts and public health crises, negatively impacts global demand and supply chains, potentially affecting the company's results of operations[90]. - A significant portion of the company's revenue is transaction-based, reliant on the volume of rated debt securities issued, which can be adversely affected by unfavorable financial conditions[90]. - The company's Commodity Insights business is impacted by volatility in commodity markets, which could reduce demand for its products and negatively affect revenues and margins[90]. - High operating costs and expenses, influenced by factors such as inflation and competition for talent, could materially affect profitability[96]. - The company relies on third-party data suppliers, and any disruptions or errors from these suppliers could hinder its ability to provide desired products and services[98]. - The competitive landscape includes traditional and non-traditional providers, and failure to compete effectively could result in loss of market share and revenue[94]. - A material portion of revenues in the Indices business is concentrated among a few large customers, and losing significant revenue from these customers could adversely affect financial results[99]. - The company faces risks from supplier data errors, delays, and potential cancellations of significant data agreements, which could materially affect its operations and financial condition[103]. - Outsourcing to third-party service providers carries risks of non-compliance with legal requirements and potential operational failures, which could lead to financial losses and reputational harm[103]. - The company relies heavily on AWS for cloud computing services, and any disruption in this service could adversely impact its operations[103]. - Public health crises, such as COVID-19, could negatively affect operations and revenue due to government restrictions and market volatility[105]. Regulatory Environment - The regulatory environment surrounding ESG ratings and financial benchmarks is evolving, potentially increasing operational obligations and compliance costs[84]. - Increased regulatory scrutiny in the financial services industry may lead to higher operational costs and compliance risks, adversely impacting financial condition and results[82]. - The evolving regulatory landscape for the company's Ratings business could result in reduced demand for credit ratings and increased costs that may not be passed on to customers[84]. - Compliance with international trade restraints and sanctions is critical, with potential fines and penalties for non-compliance posing risks to reputation and financial health[86]. - The company is investing in cybersecurity measures to prevent breaches, which may incur significant costs impacting future results[80].

S&P Global (SPGI) came out with quarterly earnings of $3.13 per share, missing the Zacks Consensus Estimate of $3.15 per share. This compares to earnings of $2.54 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -0.63%. A quarter ago, it was expected that this independent ratings and analytics provider would post earnings of $3.05 per share when it actually produced earnings of $3.21, delivering a surprise of 5.25%.Over the las ...

BRYAN R. SMITH/AFP via Getty Images Company Overview S&P Global Inc. (NYSE:SPGI) is a diversified financial services company currently operating across 5 segments, each recognized as a global leader in its respective field.[All information from SPGI Investor Factbook] Market Intelligence Through the Market Intelligence segment, S&P provides data and risk analytics for customers including investment banks, asset managers and large corporates. Flagship product is the Capital IQ desktop and mobile platform ...

New Search Experience Leverages a Large Language Model (LLM) and Natural Language Question and Answer to Generate Curated and Relevant Offerings NEW YORK, Feb. 6, 2024 /PRNewswire/ -- S&P Global announced today the launch of artificial intelligence (AI)-enabled search on the S&P Global Marketplace (Marketplace). Marketplace is S&P Global's data and solution exploration platform that represents offerings from all five divisions of S&P Global, Sustainable1, Kensho and curated third-party providers.  The Marke ...

S&P Global Inc. (SPGI) is scheduled to release its fourth-quarter 2023 results on Feb 8, before market open.SPGI has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the four trailing quarters and matching on one instance. The average earnings surprise is 4%.Q4 ExpectationsThe Zacks Consensus Estimate for the top line is currently pegged at $3.14 billion, indicating an increase of 6.8% from the year-ago actual figure. The expected growth is likely to have be ...

Complements Existing Suite of Asia & Europe Battery Metals Prices & US Black Mass Assessments NEW YORK, Feb. 5, 2024 /PRNewswire/ -- Platts, part of S&P Global Commodity Insights, the leading independent provider of information, data, analysis, benchmark prices and workflow solutions for the commodities, energy, battery metals and energy transition markets, has launched first-of-type daily, spot market US lithium carbonate price assessments.  The introduction of new price assessments of battery-grade lithiu ...

LAS VEGAS, Feb. 3, 2024 /PRNewswire/ -- automotiveMastermind, part of S&P Global Mobility and the automotive industry's trusted data and technology provider, and Morgan Automotive Group (Morgan), one of the largest automotive dealer groups in the nation, have formed a strategic partnership where Mastermind's technology and data enrichment and Polk Automotive Solutions' data services from S&P Global Mobility will be integrated into the operations at Morgan's 73 dealerships throughout Florida. Mastermind harn ...

The company's enhanced Mastermind technology helps dealers understand who's about to be in market, for what vehicle, when and at what price LAS VEGAS, Feb. 2, 2024 /PRNewswire/ -- automotiveMastermind, Inc., the automotive industry's trusted data and technology provider, is highlighting at the 2024 NADA Show how strategic integrations and enhancements to its flagship Mastermind platform have strengthened its industry position, evolving the company into a true data and technology partner. For more than a dec ...

Consumers Can Easily Find New or Used Cars Across the Country LAS VEGAS, Feb. 2, 2024 /PRNewswire/ -- More than 27 million consumers visit CARFAX each month to shop for used cars with confidence. Now, shoppers – and dealers – can use CARFAX as their one-stop shop with the addition of more than a million new car listings. More than 60% of car shoppers consider both new and used vehicles as they weigh their options. New-car shopper James L. of Logan, New Mexico, was thrilled with his CARFAX experience. "Why w ...