S&P Global Earnings: OK Financial Results, but Market Was Hoping for Something Better

While S&P Global’s second-quarter results were mostly in line with consensus, some slight softness in the nonratings businesses appears to be weighing on the stock. Revenue of $3.10 billion was 1% above the FactSet consensus, while adjusted EPS of $3.12 matched the consensus estimate. We view the July 27 pullback as a reflection that shares had appreciated 28% year to date before the earnings release and that investors were hoping for something better than unchanged firmwide revenue and adjusted EPS guidance. We will maintain our wide moat rating and are increasing our fair value estimate to $375 per share from $370 primarily due to the time value of money.