S&P Global (SPGI) Q4 2022 earnings summary

Executive summary

• Completed the IHS Markit merger in February 2022; results include IHS Markit from the acquisition date, while adjusted comparisons are pro forma as if the merger closed Jan. 1, 2021.

• Merger-related synergy targets were achieved ahead of schedule; a new strategic vision and multi-year financial target model were introduced at Investor Day.

Financial highlights

• Q4 2022 reported revenue rose 41% YoY to $2.94B; GAAP net income attributable to shareholders fell 36% to $433M and diluted EPS fell 52% to $1.33.

• Q4 adjusted revenue declined 6% YoY, or 5% on a constant-currency basis; adjusted net income fell 13% to $827M and adjusted diluted EPS fell 5% to $2.54 versus pro forma adjusted results.

• FY 2022 reported revenue rose 35% to $11.18B; GAAP net income attributable to shareholders increased 7% to $3.25B, while diluted EPS declined 18% to $10.20.

• FY 2022 pro forma adjusted revenue declined 4%, or 3% on a constant-currency basis; adjusted net income fell 9% to $3.76B and adjusted diluted EPS fell 4% to $11.19.

Outlook and guidance

• FY 2023 non-GAAP adjusted diluted EPS guidance is $12.35–$12.55; GAAP guidance was withheld because Engineering Solutions divestiture timing makes required GAAP components unreliable to forecast.

• Engineering Solutions sale to KKR for approximately $975M, including approximately $750M in net after-tax proceeds, is expected to close by end-Q2 2023.