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Dec 31, 2023
Moody's Q4 2023 Earnings Report
Moody's reported strong fourth-quarter results, with revenue increasing by 15% and diluted EPS increasing by 38%.
Key Takeaways
Moody's Corporation reported strong financial results for the fourth quarter and full year 2023. The company's revenue increased by 15% in Q4, driven by growth in both Moody's Analytics (MA) and Moody's Investors Service (MIS). Diluted EPS increased by 38% to $1.85, and adjusted diluted EPS increased by 37% to $2.19. The company provided a positive outlook for 2024, projecting revenue growth in the high-single-digit to low-double-digit percent range.
Revenue increased 15% driven by strong performance in MA and MIS.
Diluted EPS increased 38% and Adjusted Diluted EPS increased 37%.
MA's revenue grew 11% with double-digit growth across all lines of business.
MIS's revenue grew 19% driven by a recovery in debt capital markets.
Revenue by Segment
Forward Guidance
Moody's provided its outlook for full year 2024. Revenue is expected to increase in the high-single-digit to low-double-digit percent range. Operating expenses are projected to increase in the mid-to-high-single-digit percent range. Diluted EPS is projected to be between $9.45 and $10.20, and adjusted diluted EPS is expected to be between $10.25 and $11.00.
Positive Outlook
- Revenue growth in the high-single-digit to low-double-digit percent range.
- Operating cash flow between $2.3 to $2.5 billion.
- Free cash flow between $1.9 to $2.1 billion.
- Share repurchases of approximately $1.0 billion.
- MA Revenue Increase of approximately 10%
Challenges Ahead
- Operating expenses to increase in the mid-to-high-single-digit percent range.
- Interest Expense, Net $240 - $260 million
- Effective Tax Rate 22% to 24%
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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