Moody’s tops quarterly profit estimates on strong product demand

Moody’s on Thursday beat Wall Street estimates for first-quarter profit, helped by demand for its research and analytics products.

The New York-based company recorded robust sales of its products including CreditView.

WHY IT’S IMPORTANT

With growing expectations of the US avoiding a recession, investors are increasingly spending more on analytics and data-related products to enable better investment decisions. This trend bodes well for Moody’s and its peers.

KEY QUOTE

Moody’s Investors Service revenue grew 35 per cent, fueled by improved market conditions and opportunistic activity which drove strong issuance across multiple asset classes, said CFO Noemie Heuland.

BY THE NUMBERS

Revenue from the company’s analytics unit, which provides financial intelligence and analytical tools, rose about 8.4 per cent to $802 million, from a year earlier. That helped total revenue to rise 21.5 per cent to $1.79 billion.

The company reported adjusted profit of $3.37 per share for the three months ended March 31, compared with analysts’ average estimate of $3.04, according to LSEG data.

MARKET REACTION

Shares of the company were down 1 per cent in the premarket trading in thin volumes.