Moody's Q2 2024 Earnings Report
Key Takeaways
Moody's Corporation reported impressive results for the second quarter of 2024, with revenue increasing by 22% to $1.8 billion. The company's diluted EPS rose by 47% to $3.02, and adjusted diluted EPS increased by 43% to $3.28. The strong performance was driven by growth in both Moody's Analytics (MA) and Moody's Investors Service (MIS), with MIS achieving a 36% revenue increase.
Revenue increased by 22% year-over-year to $1.8 billion.
Diluted EPS increased by 47% year-over-year to $3.02.
Adjusted Diluted EPS increased by 43% year-over-year to $3.28.
MIS revenue grew by 36%, driven by heightened issuance activity.
Moody's
Moody's
Moody's Revenue by Segment
Forward Guidance
Moody's updated its outlook for full year 2024, anticipating revenue growth in the low-teens percent range and adjusted diluted EPS between $11.00 and $11.40.
Positive Outlook
- U.S. inflation rate to decline towards 2.0% by mid-2025
- Global MIS 2024 rated issuance to increase in the range of 20% to 25%
- Operating cash flow between $2.4 to $2.6 billion
- Free cash flow between $2.0 to $2.2 billion
- Share repurchases approximately $1.3 billion
Challenges Ahead
- Global high yield default rate to be in the range of 3.5% - 4.0% by year-end
- Euro area inflation rate large economies to decline towards 2.0% by mid-2025
- Global policy rates to remain elevated, with some gradual rate reductions in the second half of 2024
- U.S. high yield spreads to fluctuate around 350 - 450 bps, with periodic volatility
- U.S. unemployment rate to fluctuate around 4.0% during the year
Revenue & Expenses
Visualization of income flow from segment revenue to net income