S&P Global Forecasts Strong Earnings Growth Amidst Market Demand
S&P Global projects an impressive 2025 adjusted earnings per share (EPS) outlook, surpassing Wall Street estimates. The financial information provider anticipates a surge in demand for its data and analytics offerings amidst ongoing macroeconomic uncertainties.
Investors seeking alpha in the post-U.S. election market rally have fueled a heightened demand for market analytical tools. S&P Global, the largest credit rating agency in the U.S., has capitalized on this trend.
The New York-based company announced an accelerated share repurchase program totaling $650 million, boosting investor confidence. S&P Global shares surged by 3.4% in premarket trading.
According to LSEG data, the company forecasts an annual profit between $17.00 and $17.25 per share, exceeding analysts' predictions of $16.92. The Ratings segment, which provides credit ratings, research, and analytics, reported a revenue spike of 27% to $1.06 billion in the quarter ending December 31.
The Market Intelligence unit, S&P Global's largest segment catering to investment professionals, corporations, and government agencies, saw a revenue increase of 5% to $1.19 billion. Total quarterly revenue witnessed a significant 14% jump to $3.59 billion.
S&P Global's adjusted profit reached $3.77 per share, outperforming analysts' estimates of $3.48 per share.