S&P Global first-quarter profit beats estimates on strong product demand

S&P Global on Thursday (Apr 25) beat Street estimates for its first-quarter profit, as hopes of a “soft landing” spurred investors to spend more on data and analytics products

With growing expectations of the US Federal Reserve avoiding a recession, investors are increasingly spending more on analytics and data-related products. This trend bodes well for companies like S&P Global who provide such offerings.

Revenue from S&P’s Ratings segment, which provides credit ratings, research and analytics to investors, jumped 29 per cent to US$1.06 billion in the quarter from a year earlier. It helped the company post its record quarterly revenue of US$3.49 billion.

The company reported an adjusted diluted profit of US$4.01 per share for the three months ended Mar 31, compared with analysts’ expectations of US$3.66 per share.

The New York-based firm also raised its full-year revenue growth as well as adjusted profit forecast on growing optimism of a rebound in the economy and increased confidence in strong demand for its services.

The company now forecasts a full-year adjusted profit of US$13.85 to US$14.10 per share, compared with its earlier expectations of US$13.75 to US$14.00 per share.

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It expects its revenue growth for 2024 to be between 6 to 8 per cent, compared with 5.5 to 7.5 per cent it forecast earlier. REUTERS