Company beats Q3 targets as debt issuance rebounds
- Moody’s stock rises 3.3% on earnings beat
- Revenue grew 13% to $1.472 billion
- Moody’s expects 2023 adjusted earnings of $9.75 to $10.25 a share
- Leveraged finance revenue had its strongest quarter since 2022
- Moody’s forecasts low-to-mid-single digits growth in bond issuance
Moody’s Corp. saw its stock rise by 3.3% after beating its third-quarter earnings and revenue targets. The company reported earnings of $2.43 per share, surpassing the FactSet consensus of $2.30 per share. Revenue also grew by 13% to $1.472 billion, slightly exceeding the estimated $1.461 billion. Looking ahead, Moody’s expects adjusted earnings of $9.75 to $10.25 per share for 2023, higher than the FactSet consensus estimate of $9.99 per share. Notably, leveraged finance revenue, particularly bank loans, had its strongest quarter since the beginning of 2022. Moody’s has revised its 2023 forecasts, projecting low-to-mid-single digits growth in bond issuance, with a 40% increase in high-yield bonds and a 25% decrease in structured finance deals. Overall, Moody’s positive performance reflects the rebound in debt issuance and solid prospects for the future.
Public Companies: Moody’s Corp. (MCO), Financial Select Sector SPDR Fund (XLF)
Private Companies:
Key People:
Factuality Level: 8
Justification: The article provides specific information about Moody’s third-quarter earnings and revenue, including the actual figures and how they compare to estimates. It also mentions the company’s forecasts for 2023. The article does not contain any irrelevant or misleading information, and there is no sensationalism or opinion masquerading as fact. The reporting is straightforward and objective.
Noise Level: 3
Justification: The article provides specific information about Moody’s Corp.’s third-quarter earnings and revenue targets, as well as their forecasts for 2023. It includes some relevant details about leveraged finance revenue and bond issuance growth. However, it lacks in-depth analysis, scientific rigor, and actionable insights. The article also briefly mentions the drop in the Financial Select Sector SPDR Fund, which is unrelated to Moody’s performance.
Financial Relevance: Yes
Financial Markets Impacted: Moody’s Corp. and the debt issuance market
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses Moody’s Corp.’s positive third-quarter earnings and revenue performance, specifically highlighting the rebound in debt issuance. This information is relevant to financial markets and companies involved in debt issuance. There is no mention of an extreme event in the article.
