S&P Global Shares Rise On Strong Earnings, Mobility Spinoff Plan

S&P Global Inc. SPGI shares are trading higher on Tuesday, after the company reported first-quarter results.

S&P Global reported quarterly adjusted earnings per share of $4.37, beating the analyst consensus estimate of $4.19.

Quarterly sales of $3.78 billion (up 8% year over year) outpaced the street view of $3.70 billion. Revenue from subscription products increased 7%.

Adjusted net income for the first quarter increased 7% to $1.344 billion. Higher net income was driven primarily by strong growth in Ratings and Indices on both a GAAP and adjusted basis.

The company’s quarterly adjusted operating margin increased 100 basis points to 41.8%, driving 9% growth in adjusted EPS.

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In a separate release, the firm announced its intent to separate S&P Global Mobility from S&P Global to drive long-term value creation. The planned separation is expected to result in Mobility becoming a standalone public company.

In fiscal year 2024, the Mobility segment generated $1.6 billion in revenue, a year-over-year increase of approximately 8%. S&P Global expects to complete the separation within 12 to 18 months.

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Outlook: S&P Global updated its FY2025 adjusted EPS guidance to $16.75–$17.25, compared to the previous $17.00–$17.25 range.

The new EPS outlook compares with the $17.00 analyst estimate.

It also lowered its FY2025 sales forecast to $14.78 billion–$15.06 billion, down from $14.92 billion–$15.20 billion.

The revised sales guidance compares with the $14.99 billion analyst estimate.

Price Action: SPGI shares are trading higher by 3.2% to $494.88 at last check Tuesday.

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