S&P Global Reports Revenue Growth but Misses Earnings Estimates Amid Spinoff Confusion
S&P Global (NYSE: SPGI) reported a 10% year-over-year revenue increase to $4.15 billion in Q2, exceeding analyst expectations of $4.11 billion. However, its per-share earnings came in at $4.12, below most consensus estimates. The company also revised down full-year guidance for sales and profit growth due to slower performance from its energy markets segment. The confusion stemmed partly from the recent spinoff of Mobility Global (NYSE: MBGL), which previously included Carfax data services. S&P Global provided both GAAP and non-GAAP results, with adjusted operating profit rising 15% to $1.998 billion and adjusted diluted EPS increasing by 23%. The company's operating margins also improved year-over-year. Despite the initial market reaction that sent SPGI stock down early in Tuesday’s trading session, it recovered as investors began understanding the impact of the spinoff on financial reporting. Analysts remain largely optimistic about S&P Global, with a consensus price target nearly 28% above its current level.
Tickers: $SPGI
Topics: guidance cut revenue growth S&P Global spinoff impact