Is a Beat in the Cards for S&P Global (SPGI) in Q3 Earnings?
S&P Global Inc. SPGI is scheduled to release third-quarter 2020 results on Oct 27, before market open.
Q3 Expectations
Strength across all the segments — S&P Global Ratings (Ratings), S&P Global Market Intelligence (Market Intelligence), S&P Global Platts (Platts) and S&P Dow Jones Indices (Indices) — is likely to have driven the company’s revenues in the third quarter. The Zacks Consensus Estimate for revenues stands at $1.75 billion, indicating growth of 3.7% from the year-ago period reported figure.
Segment wise, Ratings revenues are likely to have been driven by solid global investment-grade issuance, including record quarterly U.S. investment-grade issuance. Rise in global bond issuance is likely to have boosted Transaction revenues. Market Intelligence revenues are expected to have gained from growth in Desktop, Data Management Solutions, and Credit Risk Solutions, along with the inclusion of 451 Research. Platts revenues might have benefited from core subscription business and Global Trading Services. Indices revenues are likely to have been aided by gain in exchange-traded derivative fees and increase in data and custom subscriptions.
Revenue growth in S&P Global Ratings and reduced expenses from COVID-19-related management actions are likely to have boosted S&P Global’s third-quarter 2020 earnings, the Zacks Consensus Estimate for which is pegged at $2.64 per share, indicating growth of 7.3% from the year-ago period reported figure.
What Our Model Says
Our proven model predicts an earnings beat for S&P Global this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
S&P Global has an Earnings ESP of +1.29% and a Zacks Rank #2.
SP Global Inc. Price and EPS Surprise
SP Global Inc. price-eps-surprise | SP Global Inc. Quote
Other Stocks to Consider
Here are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these also have the right combination of elements to beat on third-quarter 2020 earnings.
Aptiv APTV has an Earnings ESP of +12.02% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
CoreLogic CLGX has an Earnings ESP of +5.49% and a Zacks Rank #3.
Waste Connections WCN has an Earnings ESP of +0.32% and a Zacks Rank #3.
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