Will SPGI maintain its earnings streak in Q1 2025?
3/29/2025 02:17pm
**S&P Global is likely to maintain its earnings streak in Q1 2025**, based on several key indicators:
1. **Strong Financial Performance in Q4 2024**: S&P Global reported adjusted EPS of $3.77 for Q4 2024, surpassing analyst estimates of $3.47 by 8.6%. Revenue for the quarter was $3.592 billion, marking a 14% year-over-year increase and exceeding expectations of $3.498 billion. This robust performance demonstrates the company's ability to exceed market expectations.
2. **Positive Outlook for 2025**: The company issued guidance for 2025, projecting revenue growth of 5.0% to 7.0%, GAAP EPS in the range of $14.20 to $14.45, and adjusted EPS in the range of $17.00 to $17.25. Analysts expect the company to report profit per share of $16.92, which is within S&P Global's optimistic guidance range. This suggests that the company is positioned to maintain its earnings momentum into Q1 2025.
3. **Return to Shareholders**: S&P Global plans to return 85% or more of adjusted free cash flow to shareholders through dividends and share repurchases in 2025. The company has a history of returning value to shareholders, which could contribute to maintaining investor confidence and supporting earnings in Q1 2025.
4. **Operational Strength**: The company's Ratings segment played a significant role in its strong Q4 performance, reflecting ongoing demand for data and analytics. This segment's growth is expected to contribute to S&P Global's earnings in Q1 2025.
In conclusion, considering S&P Global's impressive financial results in Q4 2024, its optimistic guidance for 2025, and its track record of returning value to shareholders, it is reasonable to anticipate that the company will likely maintain its earnings streak in Q1 2025.