The price of S&P Global (SPGI) is falling by 1.7%. Tuesday morning, with the company’s Q2 results below consensus forecasts and its reintroduced 2022 outlook falling short of Wall Street expectations due to a steep decline in debt issuance from a year earlier.
As opposed to the $12.22 average, the market information and credit ratings company now anticipates adjusted pro forma EPS in 2022 of $11.35 to 11.55. S&P Global (SPGI) postponed its guidance in June due to market turbulence and a lack of clarity regarding the issuing environment. One of the three leading companies that provide credit ratings to debt issued to the public is this one. As a result of the lower debt issuance, its Q2 ratings transaction revenue decreased from a year ago.
When S&P Global (SPGI) completed the $44 billion all-stock acquisition of IHS Markit on March 1, 2022, the market upheaval had already begun. However, the business said it is on pace to realize the synergies associated with the deal.
Compared to adjusted pro forma EPS of $3.03 in the same period last year, Q2 adjusted EPS of $2.81 underperformed the $2.93 estimate.
Due to lower ratings transaction income and higher technology and compensation costs, the Q2 adjusted operating profit margin of 47.2% declined by 280 basis points.
$2.97 billion in Q2 adjusted pro forma revenue, down from $3.11 billion in Q2 2021
Pro forma revenue by segment after adjustments:
Market Intelligence — $1.02B increased 7% Y/Y;
Ratings — $796M declined 26%;
Commodity Insights —$427M rose 4%;
Mobility — $337M, up 7%;
Indices — $338M increased 12%;
Engineering Solutions — $96M, up 3%.
The corporation is on track to finish its $12 billion accelerated stock repurchase deal by year’s end after repurchasing $8.5 billion worth of its shares this year.
Before this, S&P Global’s non-GAAP EPS of $2.81 missed estimates by $0.12 and revenue of $2.99B by $10M.
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