Moody’s Corp (NYSE:MCO) Raises Profit Forecast
Moody’s Corp (NYSE:MCO) stock rose 0.39% (As on October 23, 11:11:39 AM UTC-4, Source: Google Finance) after the company raised its full-year adjusted profit forecast above Wall Street estimates and surpassed analyst expectations on strong demand for its research and analytics products. Moody’s Analytics (MA) Revenue grew 7% versus the prior-year period. Recurring revenue, comprising 95% of total MA revenue, grew 9%. Transaction revenue, most prominent in Banking, declined by 21%. Within Decision Solutions, revenue grew 8% compared to the prior-year period. Recurring revenue growth of 13% was led by Know Your Customer (KYC) with a 19% increase. Banking and Insurance each produced 10% and 11% recurring revenue growth, respectively. Moody’s Investors Service (MIS) revenue increased 41% compared to the prioryear period, marking MIS’ highest third quarter on record and 4th largest quarter overall. Within Corporate Finance, Investment Grade issuance increased significantly, supported by several jumbo deals across multiple sectors. Heightened volume from infrequent issuance continues to drive growth within Financial Institutions, resulting in the strongest 3Q in over a decade. Structured Finance revenue growth was primarily driven by increased refinancing activity in U.S. CLOs and CMBS, given the favorable spread environment.