Moody's raises 2024 profit forecast above estimates on robust demand for analytics

(Reuters) - Ratings agency Moody's Corp raised its forecast for full-year adjusted profit above Wall Street estimates, driven by strong demand for its research and analytics products.

Hopes of a rate cut amid cooling inflation and firming bets of the U.S. avoiding a recession have prompted investors to spend more on products that enable better investment decisions, helping firms such as Moody's rake in gains.

Moody's expects fiscal year 2024 adjusted earnings per share to be between $11 and $11.40, largely above analysts' estimates of $11.02 as per LSEG data. Its previous forecast was in the range of $10.40 to $11.

Easing economic uncertainty also helped Moody's notch up more in debt issuance, which drove up investor service arm's revenue by 36% to $1.02 billion in the second quarter.

The company's analytics arm, which provides financial intelligence and analytical tools, posted quarterly revenue of $802 million, up from $747 million a year earlier.

Net earnings attributable to Moody's Corporation was $552 million, or $3.02 per share, for the three months ended June 30, compared with $377 million, or $2.05 per share, a year earlier.

Moody's total revenue in the quarter rose nearly 22% from a year earlier to $1.82 billion.

The company also raised its outlook for 2024 share repurchases by roughly $300 million.

(Reporting by Pritam Biswas in Bengaluru; Editing by Krishna Chandra Eluri)