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Jun 30, 2024
Moody's Q2 2024 Earnings Report
Moody's reported a strong second quarter in 2024, marked by double-digit revenue growth and solid performance across both Moody's Analytics (MA) and Moody's Investors Service (MIS).
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.
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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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