S&P Global Inc (NYSE:SPGI) stock dropped after it reported its fourth-quarter results Thursday.
The New York-based company clocked revenue growth of 7% year-on-year to $3.15 billion, surpassing the consensus of $3.13 billion.
Adjusted EPS of $3.13 missed the consensus of $3.15.
Market Intelligence revenue grew by 9% Y/Y to $1.13 billion.
Ratings revenue increased 19% Y/Y to $838 million.
Commodity Insights revenue climbed 10% Y/Y to $497 million.
Mobility revenue rose by 9% Y/Y to $377 million.
Indices revenue increased 5% Y/Y to $360 million.
Consolidated operating profit improved 24% Y/Y to $890 million, led by the Ratings, Commodity Insights, and Indices segments. The margin expanded by 380 bps to 28.2% due to the increase in GAAP revenue.
The adjusted operating profit climbed by 15% Y/Y to $1.39 billion. The margin rose 290 bps to 44.1% %, primarily due to the divestiture of Engineering Solutions, and growth in its Ratings division.
The company generated $1.38 billion in adjusted free cash flow and held $1.29 billion in cash and equivalents.
Buyback: S&P Global Board authorized repurchase of shares totaling up to $2.4 billion and expects to launch an initial $500 million accelerated share repurchase soon.
FY24 Outlook: S&P Global expects revenue growth of 5.5% – 7.5% or $13.18 billion – $13.43 billion versus the consensus of $13.36 billion.
The company projects adjusted EPS of $13.75 – $14.00 versus a consensus of $14.43.
It expects an adjusted operating margin expansion of ~100 bps and adjusted free cash flow of $165 million – $175 million.
Price Action:Â SPGI shares traded lower by 4.73% at $437.99 premarket on the last check Thursday.
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