Moody’s beats revenue estimates on steady demand for analytics services
7:38 am Tuesday, July 25th, 2023
(Reuters) – Moody’s Corporation beat Wall Street estimates for second-quarter revenue on Tuesday, helped by steady demand from investors for its data, analytics and research services.
Customer demand for the firm’s ‘Know Your Customer’ solutions as well as banking and insurance services has remained resolute against an uncertain macroeconomic environment, offsetting a hit from muted capital markets activity.
“Moody’s is poised to capitalize on the momentous opportunity of generative AI to activate the power of our unique and verified data sets,” said CEO Rob Fauber.
The company’s total revenue in the second quarter rose 8% to $1.5 billion, beating analysts’ estimates of $1.45 billion, according to Refinitiv data.
Analytics segment’s revenue rose 11% to $747 million in the quarter while revenue from Moody’s Investors Service unit, which provides credit ratings and assessment services, gained 6%.
Moody’s is a global integrated risk assessment company. It operates through two segments – Moody’s Investors Service and Moody’s Analytics – providing credit ratings, assessments, research, data and analytical solutions.
On an adjusted basis, the company posted earnings per share of $2.30 for the quarter ended June 30, compared with $2.22 per share a year earlier. Analysts on average had expected $2.24 profit per share.
Shares of the company were flat in premarket trading after the results. The stock had gained 28.2% so far this year, through previous close.
(Reporting by Manya Saini in Bengaluru; Editing by Shweta Agarwal and Krishna Chandra Eluri)
