- COVID-19 Pandemic Led to a Surge of Liquidity-driven Corporate Bond Issuance
- Revenue and Operating Profit Grew Across All Four Divisions
- Diluted EPS Increased 46% to $3.28; Adjusted Diluted EPS Increased 40% to $3.40
- Operating Profit Margin Improved 920 Basis Points to 56.9%
S&P Global (NYSE: SPGI) reported second quarter 2020 results with revenue of $1,943 million, an increase of 14% compared to the same period last year. Net income increased 43% to $792 million and diluted earnings per share increased 46% to $3.28 primarily due to revenue growth in S&P Global Ratings and reduced expenses from COVID-19 related management actions.
Adjusted net income increased 37% to $822 million and adjusted diluted earnings per share increased 40% to $3.40 primarily due to revenue growth in S&P Global Ratings and reduced expenses across the Company from COVID-19 related management actions. The adjustments in the second quarter of 2020 were associated with restructurings in Corporate, a gain on a divestment, as well as deal-related amortization and Kensho retention-related expenses.
“Companies, particularly in the U.S., have turned to the bond market to raise liquidity during this COVID-19 pandemic while central banks have initiated bond purchase programs to support market liquidity. The need for our products has increased during these uncertain times and we are proud that our people and our organization have delivered the insights and essential intelligence that the market expects from us. In fact, all four of our divisions delivered solid growth during the quarter,” said Douglas L. Peterson, President and Chief Executive Officer of S&P Global. “These are unprecedented times and over 99% of our employees continue to work from home. I am proud of their efforts not only to ensure that all of our operations continue uninterrupted, but also to innovate with new product launches and advance our investment and productivity programs while supporting the markets and our customers with relevant and timely ratings, benchmarks, research, data and analytics.”
Source: S&P Global Earnings Release