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Sep 30, 2024
Moody's Q3 2024 Earnings Report
Moody's revenue and EPS increased, driven by strong performance in both MIS and MA segments.
Key Takeaways
Moody's Corporation reported a strong third quarter with revenue reaching $1.8 billion, a 23% increase year-over-year. Diluted EPS increased by 39% to $2.93, and adjusted diluted EPS increased by 32% to $3.21. The company raised its full-year adjusted diluted EPS guidance to $11.90 to $12.10.
Moody's reported record-breaking revenue performance in the third quarter.
MIS transactional revenue grew 70%, outpacing issuance growth of 51%.
Recurring revenue in the analytics business showed strong growth.
The company raised its adjusted diluted EPS guidance for the full year.
Revenue by Segment
Forward Guidance
Moody's updated its outlook for full year 2024, reflecting assumptions about economic conditions, interest rates, inflation, and capital market liquidity.
Positive Outlook
- Revenue is expected to increase in the high-teens percent range.
- Operating margin is projected to be between 40% and 41%.
- Adjusted operating margin is anticipated to be between 47% and 48%.
- Operating cash flow is estimated to be approximately $2.7 billion.
- Free cash flow is projected to be around $2.3 billion.
Challenges Ahead
- Operating expenses are expected to increase by approximately 10%.
- Interest expense, net, is projected to be approximately $245 million.
- The effective tax rate is anticipated to be between 23% and 24%.
- Global high yield default rate is projected to decline to around 4.2% by year-end 2024.
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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