S&P Global (SPGI) to Report Q2 Earnings: Here’s What to Expect

S&P Global Inc. SPGI is scheduled to release its second-quarter 2023 results on Jul 27, before the market open.

SPGI has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the four trailing quarters and missing on one instance. The average surprise is 3.1%.

Q2 Expectations

The Zacks Consensus Estimate for the top line is currently pegged at $3.06 billion, up 2.3% from the year-ago actual figure. The expected growth is likely to be driven by improved segmental performance.

S&P Global Inc. Price and EPS Surprise

S&P Global Inc. price-eps-surprise | S&P Global Inc. Quote

The consensus estimate for earnings per share is pegged at $3.12, up 11% year over year. The increase can be attributed to the likely disciplined expense management.

Segmental Expectations

Our estimates for Marketing Intelligence’s revenues for second-quarter 2023 is pegged at $1 billion, indicating 2.2% decline from the year-ago reported figure. The same for Ratings’ revenues for second-quarter 2023 is pegged at $805.8 million, indicating 1.2% growth from the year-ago reported figure.

Our estimates for Indices, Commodity Insights and Mobility revenues are pegged at $341.3 million, $432.6 million and $312 million respectively. The estimated figures for Commodity Insights and Mobility indicate respective declines of 1.2% and 7.4% from the year-ago figures, while the estimated figure for Indices reflects a slight increase from the year-ago reported figure. We expect adjusted EBITDA for the to-be-reported quarter to be $1.59 billion, which is 6.5% lower than the year-ago figure. The adjusted EBITDA margin is projected to be 52.7%, down from the year-ago figure of 57%.

What Our Model Says

Our proven model predicts an earnings beat for SPGI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

SPGI has an Earnings ESP of +1.89% and a Zacks Rank of 2.

Other Stocks to Consider

Here are a few other stocks from the broader Business Services sector, which according to our model, also have the right combination of elements to beat on earnings this season.

Aptiv APTV currently has a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for the bottom line is pegged at $1.01 per share, up more than 100% from the year-ago figure. The consensus mark for revenues is pegged at $4.7 billion, up 15.8% from the figure reported a year ago. APTV had an average negative surprise of 8.1% in the previous four quarters.

APTV has an Earnings ESP of +12.88. The company is scheduled to release its second-quarter earnings on Aug 3.

Fiserv FI currently has a Zacks Rank of 3. The Zacks Consensus Estimate for the bottom line is pegged at $1.81 per share, up 16% from the year-ago reported figure. The consensus mark for revenues is pegged at $4.52 billion, up 6.8% from the prior-year reported figure. SPGI had an average surprise of negative 0.39% in the previous four quarters.

FI has an Earnings ESP of +0.42. The company will declare its second-quarter results on Jul 26.

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