S&P Global (SPGI) to Post Q4 Earnings: A Beat in the Cards?

S&P Global, Inc.SPGI is slated to report fourth-quarter 2016 results on Feb 7, before the markets open. In the previous quarter, the company delivered a positive earnings surprise of 5.9%. Notably, the company surpassed the Zacks Consensus Estimate in the last four quarters with an average positive earnings surprise of 5.6%. Nonetheless, it remains to be seen if the company will be able to keep its earnings streak alive.

Let's see how things are shaping up for this announcement.

Likely Earnings Beat in the Cards

Our proven model shows that S&P Global is likely to beat earnings estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. The Most Accurate estimate for the company stands at $1.22, while the Zacks Consensus Estimate is pegged lower at $1.20. So the difference - the Earnings ESP - is of +1.67%. A positive ESP combined with the company's Zacks Rank #2, makes us reasonably confident of an earnings beat.

You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

What's Driving the Better-than-Expected Results?

S&P Global is focusing on its core business, which is helping it emerge as a leader among rating providers, benchmark providers and analytics in the global capital as well as commodity markets. It completed several business divestitures in the third quarter including the sale of J.D. Power, its two pricing businesses SPSE and CMA, and the equity research business. The impact of these divestitures is likely to be seen in its fourth-quarter results.

In the third quarter it also completed the acquisition of PIRA Energy Group and Trucost. These deals are likely to be accretive in the fourth quarter. The company has been consistently making strategic investments such as buyouts to facilitate long-term profitability.

S&P Global has been consistently impressing investors with its earnings performance over the last 15 quarters. It is expected to report better-than-expected earnings in the fourth quarter as well.

Based on its strong results, year to date, the company increased its adjusted EPS (earnings per share) guidance to the range of $5.15 to $5.25 compared with the previous projection of 5.05-$5.20.

S&P Global Inc. Price and EPS Surprise

S&P Global Inc. Price and EPS Surprise | S&P Global Inc. Quote

Other Stocks Poised to Beat Earnings Estimates

Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

CNA Financial Corp. CNA has an Earnings ESP of +13.42% and a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .

Allison Transmission Holdings, Inc. ALSN has an Earnings ESP of +7.41% and a Zacks Rank #3.

Camden Property Trust CPT has an Earnings ESP of +0.88% and a Zacks Rank #3.

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S&P Global Inc. (SPGI): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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