Moody's raises 2024 profit forecast above estimates on robust demand for analytics

Moodys

23/07/2024 13:19

July 23 (Reuters) - Ratings agency Moody's Corp  MCO.N 
raised its forecast for full-year adjusted profit above Wall
Street estimates, driven by strong demand for its research and
analytics products. 
    Hopes of a rate cut amid cooling inflation and firming bets
of the U.S. avoiding a recession have prompted investors to
spend more on products that enable better investment decisions,
helping firms such as Moody's rake in gains. 
    Moody's expects fiscal year 2024 adjusted earnings per share
to be between $11 and $11.40, largely above analysts' estimates
of $11.02 as per LSEG data. Its previous forecast was in the
range of $10.40 to $11. 
    Easing economic uncertainty also helped Moody's notch up
more in debt issuance, which drove up investor service arm's
revenue by 36% to $1.02 billion in the second quarter.
    The company's analytics arm, which provides financial
intelligence and analytical tools, posted quarterly revenue of
$802 million, up from $747 million a year earlier.
    Net earnings attributable to Moody's Corporation was $552
million, or $3.02 per share, for the three months ended June 30,
compared with $377 million, or $2.05 per share, a year earlier. 
    Moody's total revenue in the quarter rose nearly 22% from a
year earlier to $1.82 billion.
    The company also raised its outlook for 2024 share
repurchases by roughly $300 million.

    

 (Reporting by Pritam Biswas in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Pritam.Biswas@thomsonreuters.com;))