S&P Global Posts Lower 3Q Profit, Higher Sales; Cuts Earnings Outlook
October 27 2020 - 8:20AM
Dow Jones News
By Dave Sebastian
S&P Global Inc. said Tuesday its profit fell for the recent
quarter due to debt tender premium and fees associated with a
recent senior notes tender offer and it cut its full-year earnings
outlook, though the company's ratings business drove gains in sales
due to strong bond issuance amid the Covid-19 pandemic.
The company posted third-quarter profit of $455 million, or
$1.88 a share, compared with $617 million, or $2.50 a share, in the
comparable quarter last year.
Adjusted earnings were $2.85 a share. Analysts polled by FactSet
were expecting $2.57 a share.
Revenue rose 9%, to $1.85 billion. Analysts were looking for
$1.74 billion.
S&P Global Ratings' revenue rose 13%, to $894 million,
offset by lower bank loan rating activity. Transaction revenue rose
22%, to $490 million.
Market-intelligence revenue grew 9%, to $530 million. S&P
Dow Jones Indices LLC revenue grew 1%, to $234 million, on modest
gains in asset-linked fees and data and custom subscriptions.
Platts revenue grew 5%, to $222 million, due to growth in its core
subscription business, offset by lower global trading services
activity.
The company cut its earnings outlook to $10 a share to $10.15 a
share, from $10.25 a share to $10.45 a share, due to the debt
tender premium and fees incurred in the third quarter.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
October 27, 2020 08:05 ET (12:05 GMT)
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