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Mar 31, 2024
Moody's Q1 2024 Earnings Report
Moody's reported strong first-quarter results, marked by significant revenue growth and improved earnings per share.
Key Takeaways
Moody's Corporation reported a strong first quarter in 2024, with revenue increasing by 21% to $1.8 billion. Moody's Investors Service (MIS) revenue grew by 35%, and Moody's Analytics (MA) revenue increased by 8%. The company's diluted EPS was $3.15, and adjusted diluted EPS was $3.37. Moody's has narrowed its Adjusted Diluted EPS guidance to be in the range of $10.40 to $11.00.
Revenue increased by 21% compared to the prior-year period.
Moody’s Investors Service revenue grew 35%, driven by improved market conditions.
Moody’s Analytics revenue increased by 8%, with ARR growing by 10%.
Adjusted Diluted EPS guidance narrowed to a range of $10.40 to $11.00.
Revenue by Segment
Forward Guidance
Moody's updated outlook for full year 2024 reflects assumptions about numerous factors that could affect its business and is based on currently available information reviewed by management.
Positive Outlook
- Revenue: Increase in the high-single-digit to low-double-digit percent range
- Operating Expenses: Increase in the mid-to-high-single-digit percent range
- Adjusted Operating Margin: 44% to 46%
- Operating Cash Flow: $2.3 to $2.5 billion
- Free Cash Flow: $1.9 to $2.1 billion
Challenges Ahead
- Operating Margin: 37% to 39%
- Interest Expense, Net: $240 - $260 million
- Effective Tax Rate: 22% to 24%
- Diluted EPS: $9.55 to $10.15
- Share Repurchases: Approximately $1.0 billion (subject to available cash, market conditions, M&A opportunities, and other ongoing capital allocation decisions)
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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