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Market Overview

Preview: S&P Global's Earnings

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On Tuesday, February 09, S&P Global (NYSE:SPGI) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street analysts see S&P Global reporting earnings of $2.51 per share on sales of $1.76 billion. In the same quarter last year, S&P Global reported earnings per share of $2.53 on sales of $1.74 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate, earnings would be down 0.79%. Sales would be have grown 1.44% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 2.58 2.65 2.30 2.43
EPS Actual 2.85 3.40 2.73 2.53
Revenue Estimate 1.74 B 1.76 B 1.66 B 1.70 B
Revenue Actual 1.85 B 1.94 B 1.79 B 1.74 B

Stock Performance

Over the last 52-week period, shares are up 10.64%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. S&P Global is scheduled to hold the call at 08:30:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings