S&P Global (SPGI) Q1 2021 earnings summary

Executive summary

• Q1 revenue rose 13% YoY to $2.016B, with growth across all four divisions; adjusted diluted EPS increased 24% to $3.39.

• Operating margin expanded 260 bps to 53.6%; adjusted operating margin rose 450 bps to 57.6%.

• Organic revenue on a constant-currency basis increased 12% YoY.

Financial highlights

• Net income attributable to shareholders increased 18% to $755M; diluted EPS rose 19% to $3.12.

• Adjusted net income increased 23% to $820M; adjusted diluted EPS grew 24% to $3.39.

• Operating profit rose 19% to $1.081B; income before taxes increased 20% to $1.056B.

• Q1 free cash flow was $681M, up $63M YoY; excluding merger costs, it was $718M, up $100M YoY.

Outlook and guidance

• 2021 reported revenue is expected to increase mid-single digits.

• Adjusted diluted EPS guidance increased by $0.30 to $12.55–$12.75; free cash flow excluding certain items guidance rose to $3.4B–$3.5B.

• Adjusted guidance is stand-alone and excludes anticipated merger expenses, post-merger IHS Markit impacts, and acquisition-related intangible amortization.