(Reuters) - Moody's (NYSE:MCO) on Thursday beat Wall Street estimates for first-quarter profit, helped by demand for its research and analytics products.
The New York-based company recorded robust sales of its products including CreditView.
WHY IT'S IMPORTANT
With growing expectations of the U.S. avoiding a recession, investors are increasingly spending more on analytics and data-related products to enable better investment decisions. This trend bodes well for Moody's and its peers.
KEY QUOTE
Moody's Investors Service revenue grew 35%, fueled by improved market conditions and opportunistic activity which drove strong issuance across multiple asset classes, said CFO Noemie Heuland.
BY THE NUMBERS
Revenue from the company's analytics unit, which provides financial intelligence and analytical tools, rose about 8.4% to $802 million, from a year earlier. That helped total revenue to rise 21.5% to $1.79 billion.
The company reported adjusted profit of $3.37 per share for the three months ended March 31, compared with analysts' average estimate of $3.04, according to LSEG data.
MARKET REACTION
Shares of the company were down 1% in the premarket trading in thin volumes.