- Ratings unit revenue helps income rise 13% from year ago
- Company, formerly McGraw Hill, cuts outlook on J.D. Power sale
S&P Global Inc., owner of the world’s largest credit rater, reported second-quarter profit that exceeded analysts’ estimates as bond offerings bounced back.
Adjusted net income increased 13 percent to $385 million from a year earlier, the New York-based company said in a statement Thursday. That compares with a median estimated profit of $352 million. Revenue climbed 10 percent to $1.48 billion as turnover at S&P Global Ratings, the company’s credit evaluating unit, climbed 4 percent to $682 million.
The company, which changed its name from McGraw Hill Financial Inc. in April, had suffered in the first quarter as market volatility forced borrowers to delay plans for raising debt, sapping demand for new ratings. Global uncertainty eased in the three months through June, lifting bond sales 18 percent from the previous period. Transaction revenue at the rating unit jumped 5 percent.
“Every business segment delivered revenue growth despite macroeconomic pressures including low commodity prices and ongoing volatility in the markets we serve,” Douglas Peterson, S&P Global’s chief executive officer, said in the statement.
The company cut its revenue guidance to “mid single-digit growth” to reflect the pending sale of J.D. Power, a market research provider, by the end of September. S&P Global said it plans to increase its share repurchases to minimize dilution from the sale.
The company will discuss the results on a conference call at 8.30 a.m. in New York.