(Bloomberg) -- Moody’s Corp.’s reported third-quarter earnings that beat estimates and raised its annual outlook after a flurry of bond deals boosted its ratings business.
The firm reported third-quarter earnings of $3.21, surpassing Wall Street expectations of $2.88. Adjusted earnings this year will be $11.90 to $12.10 per share, the company said in a filing Tuesday, up from a prior view of $11 to $11.40. A consensus of analyst estimates called for $11.71 per share.
Transactional revenue from the firm’s debt rating business grew 70% from the prior-year period, buoyed by heightened issuance from infrequent borrowers across all lines of business and several jumbo deals, the firm said. Revenue from rated investment-grade issuance increased the most, by 137% while revenue from junk and leveraged loans grew by 111% and 46% respectively.
A rally that has driven the stock up around 20% this year took a breather Tuesday as shares fell around 3.46% in New York trading. The stock hit an all-time high last month.
Moody’s “had a strong run into the quarter given issuance resilience,” wrote Jeffrey Silber, a BMO analyst.
Borrowers across the globe seized on declining interest rates and strong investor demand to borrow over $600 billion last month, making it the busiest September in more than two decades. More companies are expected to raise funds after reporting third-quarter earnings to get ahead of any potentially volatility that may result from US elections in two weeks.
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