(Reuters) - Financial information company S&P Global raised its annual profit forecast on Thursday and beat Wall Street estimates for third-quarter profit on strong demand for its data and analytics products.
WHY IT'S IMPORTANT
Expectations of further interest-rate cuts kept investors confident in the health of the U.S. economy and boosted demand for market-related analytical tools for better investment choices, helping firms such as S&P Global and Moody's (NYSE:MCO) .
BY THE NUMBERS
S&P Global now expects its 2024 adjusted earnings per share between $15.10 and $15.30, compared with the prior view of $14.35 to $14.60.
The company reported an adjusted profit of $1.21 billion, or $3.89 per share, in the three months ended Sept. 30, up from $1.02 billion, or $3.21, a year earlier.
Analysts on average estimated an adjusted profit of $3.64 per share, according to data compiled by LSEG.
The market intelligence unit, S&P Global's biggest segment in terms of revenue that provides data and analytics, posted a 6% rise in its third-quarter revenue of $1.16 billion from a year ago.
Revenue from the company's ratings segment, which provides credit ratings, research and analytics to investors, rose 36% to $1.11 billion.
The company's mobility business, which focuses on vehicle, market and consumer data for original equipment manufacturers, reported a 9% rise in quarterly revenue.
S&P Global's total third-quarter revenue increased 16% to $3.58 billion.
CONTEXT
The New York-based company provides credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets.
S&P Global Ratings had agreed to pay $20 million in civil penalties to settle U.S. Securities and Exchange Commission charges for breaking record-keeping rules, Reuters reported in September.
Peer Moody's Corp on Tuesday also reported a rise in third-quarter profit on the back of strong product demand.