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S&P Global lifts annual profit forecast on strong demand for data, analytics

Published 11/02/2023, 08:25 AM
Updated 11/02/2023, 08:31 AM
© Reuters. FILE PHOTO: The S&P Global logo is displayed on its offices in the financial district in New York City, U.S., December 13, 2018/File Photo
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(Reuters) - S&P Global on Thursday raised its annual profit forecast, benefiting from strong growth in its Market Intelligence and Ratings segments.

The company said it expects annual adjusted profit of $12.50 to $12.60 per share, higher than its previous forecast of $12.35 to $12.55.

A recovery in markets this year, prompted by signals that the U.S. Federal Reserve is nearing the end of its rate hiking cycle, has boosted demand for data and analytics.

This has bolstered S&P's Market Intelligence segment, the biggest unit, which provides data and analytics to investment professionals, corporations and government agencies.

Adjusted revenue, excluding the impact of divested businesses, from the segment rose 8% to $1.10 billion in the third quarter ended Sept. 30.

"Revenue growth accelerated in every division," said CEO Douglas Peterson in a statement.

The company's Ratings business, which provides credit ratings, research, and analytics to investors, posted revenue growth of 20% on an adjusted basis, while revenue in the Commodity Insights unit climbed 11%.

© Reuters. FILE PHOTO: The S&P Global logo is displayed on its offices in the financial district in New York City, U.S., December 13, 2018/File Photo

Total revenue rose 8% to $3.08 billion, while adjusted revenue, excluding engineering solutions, increased 11%.

On an adjusted basis, S&P reported a profit of $3.21 per share, compared with $2.93 a year earlier.

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