S&P Global stated that spinning off the Capital IQ department as well as most of the business related to Kensho data and platforms may help these businesses achieve growth.
The company stated on Tuesday that splitting the Capital IQ department, along with the Kensho data, from the main business of the platform is expected to unleash the growth potential of these operations.
President and CEO Martina Zhang ( Martina Cheung ) stated: "The businesses involved in this strategic assessment are inherently strong. As technology changes the way customers acquire, analyze, and use information, there are significant development opportunities ahead for these businesses."
After the announcement of the news, the stock rose by 3.7% recently, reaching $467.
In 2018, Standard & Poor's Global spent approximately $550 million to acquire Kensho in order to position itself in the artificial intelligence sector. A company spokesperson previously stated that Kensho was founded in 2013, and its team members came mostly from Google, Meta's Facebook, as well as Twitter, which has now been renamed X.
S&P Global stated that it plans to retain RatingsDirect, RatingsXpress, as well as the corporate solutions segment.
In July this year, S&P Global announced a reorganization of its market intelligence business, dividing it into two vertical business lines: Kensho and corporate solutions, in order to better meet customers' needs related to artificial intelligence.
The company has raised its full-year performance forecast: the adjusted earnings per share have been increased from the previous range of $17.50-17.75 to $17.70-17.95; the revenue growth forecast has been raised to 7.4%-8.4%, from the previous estimate of 5.9%-7.9%. FactSet The consensus forecast among research analysts is: an adjusted earnings per share of $17.85 for the whole year and revenue of $14.84 billion.
The company expects earnings per share for the full year under U.S. Generally Accepted Accounting Principles (GAAP) to be between $16.25 and $16.50, compared to the previous estimate range of $16.35 to $16.60.
In the third quarter ending September 30, S&P Global achieved a net profit of $1.24 billion, equivalent to $4.25 per share; in the same period last year, the net profit was $1.18 billion, with $3.86 per share.
After excluding some one-time items, the adjusted earnings per share amounted to $4.58, significantly exceeding the average forecast of $4.43 by analysts as recorded by FactSet.
Revenues increased by 7% year-on-year, reaching $3.68 billion, which is higher than the analysts' average forecast of $3.64 billion. Revenue from the ratings business grew slightly by 2% to $1.27 billion; revenue from the index business increased strongly by 20%, reaching $554 million, offsetting the modest performance of the ratings business.
