S&P Global Revenues for the 4th Quarter 2019 increased 13% and Full-Year 2019 Revenue Increased 7%.
The Company reported fourth quarter 2019 revenue of $1.74 billion, an increase of 13% compared to the same period in 2018 with growth in all four businesses.
For the full year, revenue increased 7% to $6.70 billion. 2019 net income increased 8% to $2.12 billion and diluted earnings per share increased 11% to $8.60. 2019 adjusted net income increased 9% to $2.35 billion and adjusted diluted earnings per share increased 12% to $9.53.
“During 2019, we successfully launched several new products, advanced numerous automation and productivity projects, and through a handful of acquisitions added unique new data sets, products, and services,” said Douglas L. Peterson, President and Chief Executive Officer of S&P Global. He added, “While we are pleased with these accomplishments, there is much more to achieve. Again in 2020, we will invest in initiatives to advance our technology, create innovative new products, and expand globally. Much of the funding for these investments will be delivered through productivity and automation projects. With the capabilities we have, and those that we are building, we are even better positioned to provide the intelligence essential to advance progress.”
Profit Margin: For the full year, the Company’s operating profit margin improved by 360 basis points to 48.2% as the Company continued to achieve revenue growth and successfully deliver productivity improvements. The adjusted operating profit margin improved by 140 basis points to 50.2% in 2019.
Strategy Update: At our Investor Day in May 2018, the Company initiated several medium-term aspirational targets. The first was a $100 million target for cost reduction savings. The Company estimates that, on a run-rate basis, $85 million in savings was achieved by year-end 2019. The second was to improve the adjusted operating profit margin for the Company from 46.5% at the end of 2017 to the low-50’s over the next few years. After achieving 230 basis points of improvement in 2018, the Company achieved an additional 140 basis points of improvement in 2019, reaching 50.2%. The Company will continue to work toward full achievement of these aspirational targets.
Outlook: The Company is introducing 2020 guidance with reported revenue expected to increase mid to high single-digits. On a U.S. GAAP basis, diluted EPS is expected to be in the range of $10.00 to $10.20 and adjusted diluted EPS is expected to be in the range of $10.40 to $10.60. Adjusted diluted EPS excludes amortization of intangibles related to acquisitions and Kensho retention plans. Free cash flow excluding certain items is expected to be in a range of $2.6 billion to $2.7 billion.
Source: S&P Press Release