Moody’s Corp.’s stock
MCO,
rose 3.3% after the company beat its third-quarter earnings and revenue targets on a rebound in debt issuance. Moody’s said it earned $2.43 a share in the quarter, well ahead of the FactSet consensus of $2.30 a share. Revenue grew 13% to $1.472 billion, slightly beating the $1.461 billion estimate. Looking ahead, Moody’s expects 2023 adjusted earnings of $9.75 a share to $10.25 a share, against a FactSet consensus estimate of $9.99 a share. Among the bright spots in the quarter, leveraged finance revenue, notably bank loans, had its strongest quarter since the start of 2022, Moody’s said. Moody’s upped its 2023 forecasts from its July estimates to bond issuance growth in the low-to-mid-single digits percentage range. It’s expecting a roughly 40% increase in high-yield bonds. Structured finance deals are expected to drop by 25% in 2023. The Financial Select Sector SPDR Fund
XLF,
dropped by 0.5%.
