S&P Global Reports Third Quarter Results

Revenue Increased 5%, Impacted by 2016 Divestiture and Acquisition Activity
Organic Revenue Increased 12%
Diluted EPS Decreased 52% to $1.61 with the Prior Period Benefiting from the Sale of J.D. Power
Adjusted Diluted EPS Increased 19% to $1.71
Operating Profit Margin Declined 5,020 Basis Points to 43%
Adjusted Operating Profit Margin Increased 190 Basis Points to 46%

S&P Global (NYSE: SPGI) today reported third quarter 2017 results with revenue of $1,513 million, an increase of 5% compared to the same period last year.  On an organic basis, third quarter revenue increased 12% with strong growth in every business segment.

Net income decreased 54% to $414 million and diluted earnings per share declined 52% to $1.61 as a result of the prior period benefiting from a pre-tax gain of $722 million on the sale of J.D. Power.   Adjusted net income increased 16% to $442 million and adjusted diluted earnings per share increased 19% to $1.71. The adjustments in the third quarter of 2017 were for deal-related amortization and restructuring.  Both net income and adjusted net income benefited from an accounting change associated with the recognition of excess tax benefits from stock-based compensation in 2017.

“The underlying environment for our businesses is healthy with an improving global GDP, higher commodity prices, strong equity markets, and modest growth in U.S. bond issuance.  With this backdrop, our Company is thriving as all of our business segments contributed solid organic revenue and adjusted operating profit growth during the quarter,” said Douglas L. Peterson, President and Chief Executive Officer of S&P Global.  “We continue to focus on delivering meaningful revenue growth, launching new products, investing in productivity, and returning capital to shareholders.”

Margin: The Company’s operating profit margin declined by 5,020 basis points to 43% due to a gain in the prior period from the sale of J.D. Power.  The adjusted operating profit margin improved by 190 basis points to 46% due to strong organic revenue growth, the sale of lower margin businesses, and productivity initiatives.

Return of Capital: During the third quarter, the Company returned $604 million to shareholders through a combination of $104 million in dividends and $500 million in the form of an accelerated share repurchase (ASR) agreement. Under the ASR, 2.8 million shares were repurchased during the third quarter. Later this month, the ASR will be completed and we expect to receive additional shares.
more detail at:  http://investor.spglobal.com/file/Index?KeyFile=390787052

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