Moody's raises full-year profit forecast above estimates on strong product demand

Moodys

22/10/2024 13:04

Oct 22 (Reuters) - Ratings agency Moody's  MCO.N  raised
its full-year adjusted profit forecast above Wall Street
estimates and posted a nearly 31% rise in third-quarter earnings
on Tuesday, on strong demand for its research and analytics
products. 
    
WHY IT'S IMPORTANT 
Growing expectations of a soft landing for the U.S. economy as
the Federal Reserve began its rate cut cycle in September have
spurred investors to spend more on analytics and data-related
products to enable better investments. 
    This has helped firms such as Moody's to perform well. 
    
KEY QUOTE
"Moody's record-breaking revenue performance in the third
quarter is a testament to our unwavering status as the Agency of
Choice for our customers and our actions to prime the business
for durable future growth," said CEO Robert Fauber in a
statement. 
    
BY THE NUMBERS 
Revenue in Moody's analytics unit, which provides financial
intelligence and analytical tools, grew 7% to $831 million in
the quarter ended Sept. 30 from a year earlier, while revenue in
the investor service arm rose nearly 41% to $982 million. 
    Total revenue for the company came in at $1.81 billion, up
from $1.47 billion a year earlier. 
    Adjustable net income was $585 million, or $3.21 per share,
compared with $447 million, or $2.43 per share, a year earlier.
    Moody's expects fiscal year 2024 adjusted earnings per share
to be between $11.90 and $12.10, largely above analysts' average
estimate of $11.69, according to data compiled by LSEG. Its
previous forecast was in the range of $11 to $11.40.
    
MARKET REACTION
    Shares of Moody's were up 2% in trading before the bell.
They have gained about 25% so far this year. 

 (Reporting by Pritam Biswas in Bengaluru; Editing by Shinjini
Ganguli)
 ((Pritam.Biswas@thomsonreuters.com))