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

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


RATINGS agency Moody’s raised its full-year adjusted profit forecast above Wall Street estimates and posted a nearly 31 per cent rise in third-quarter earnings on Tuesday (Oct 22), on strong demand for its research and analytics products.

Growing expectations of a soft landing for the US 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.

“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.

Revenue in Moody’s analytics unit, which provides financial intelligence and analytical tools, grew 7 per cent to US$831 million in the quarter ended Sep 30 from a year earlier, while revenue in the investor service arm rose nearly 41 per cent to US$982 million.

Total revenue for the company came in at US$1.81 billion, up from US$1.47 billion a year earlier.

Adjustable net income was US$585 million, or US$3.21 per share, compared with US$447 million, or US$2.43 per share, a year earlier.

Moody’s expects fiscal year 2024 adjusted earnings per share to be between US$11.90 and US$12.10, largely above analysts’ average estimate of US$11.69, according to data compiled by LSEG. Its previous forecast was in the range of US$11 to US$11.40.

Shares of Moody’s were up 2 per cent in trading before the bell. They have gained about 25 per cent so far this year. REUTERS



Source link

Posted in

Swedan Margen

I focus on highlighting the latest in business and entrepreneurship. I enjoy bringing fresh perspectives to the table and sharing stories that inspire growth and innovation.

Leave a Comment