SP Group Q1 Report 2024

The Company reported first quarter 2024 revenue of $3.491 billion, an increase of 10% compared to the first quarter of 2023. First quarter GAAP net income increased 25% to $991 million and GAAP diluted earnings per share increased 28% to $3.16 as higher net income was driven primarily by strong growth in Ratings and Indices, and lower merger-related costs. Excluding the impact of Engineering Solutions (ES), revenue growth would have been 14% year over year. Adjusted net income for the first quarter increased 24% to $1,258 million and adjusted diluted earnings per share increased 27% to $4.01. 

Highlights

• Quarterly revenue of $3.491 billion surpassed our previous quarterly revenue record by more than 10%.
• Strong execution and continued discipline around expense and investment drove approximately 350 bps of operating margin expansion on both a GAAP and adjusted basis.
• The Company expects to execute additional share repurchases totaling approximately $1.3 billion through the third quarter of 2024.
• The Company is raising full-year 2024 guidance. Guidance now calls for revenue growth of 6.0% – 8.0%, GAAP diluted EPS in the range of $10.80 – $11.05, and adjusted diluted EPS in the range of $13.85 – $14.10.
• First quarter GAAP diluted earnings per share increased 28% to $3.16 primarily due to a 25% increase in net income, and a 3% reduction in diluted shares outstanding.
• Adjusted diluted earnings per share increased 27% to $4.01 due to a 24% increase in adjusted net income and a 3% decrease in diluted shares outstanding.