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.

SEE ALSO

Moody’s changes outlook on US banking system to stable from negative

Temasek, Saudi Arabia’s PIF rated highest for credit metrics and liquidity by Moody’s

US debt dynamics ‘inconsistent with AAA rating,’: Moody’s

The Business Times turns 50

Five decades of milestones and moments that shaped Singapore’s success story - told through our headlines.

Explore BT50»

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