Moody

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We maintain our target price at $460, on a forward P/E of 36.3x our 2025 earnings estimate, a premium to MCO’s three- and 10-year forward historical averages of 31.9x and 26.4x, respectively, given an improving margin profile and expectations for rapid earnings growth. We increase our 2024 EPS estimate by $0.28 to $11.42 and raise 2025’s by $0.05 to $12.68. MCO posted Q1 adjusted EPS of $3.37 versus $2.99, $0.35 above consensus on revenue of $1.79B (6% above consensus). Leading the outperformance was MIS (the ratings segment), which saw revenue surge 35% Y/Y to $987M, the second highest level on record. However, 8% growth in MA (the analytics segment) disappointed given weakness in Research & Insights. Still, MCO kept its operating expenses (+8%) in check; thus, the […]

Moody’s Corporation (NYSE:MCO) Q1 2024 Results Conference Call May 2, 2024 11:30 AM ET Company Participants Shivani Kak – Head of Investor Relations Rob Fauber – President and Chief Executive Officer Noemie Heuland – Senior Vice President & Chief Financial Officer Conference Call Participants Heather Balsky – Bank of America Manav Patnaik – Barclays Toni Kaplan – Morgan Stanley Ashish Sabadra – RBC Capital Markets Andrew Nicholas – William Blair Scott Wurtzel – Wolfe Research Faiza Alwy – Deutsche Bank Jeff Silber – BMO Capital Markets George Tong – Goldman Sachs Craig Huber – Huber Research Jeff Meuler – Baird Andrew Steinerman – JPMorgan Russell Quelch – Redburn Owen Lau – Oppenheimer Craig Huber – Huber Research Shlomo Rosenbaum – Stifel Operator Good day, everyone, and welcome to the Moody’s Corporation First Quarter 2024 Earnings Call. At this time, I would like to inform you that this conference is being

Moody’s Sees 2024 Operating Cash Flow $2.3B-$2.5B, Free Cash Flow $1.9B-$2.1B.

Moody’s Sees 2024 Share Repurchases About $1 Billion MCO.

Moody’s (NYSE:MCO) reported quarterly adjsuted earnings of $2.19 per share which missed the analyst consensus estimate of $2.32 by 5.6 percent. This is a 36.87 percent increase over earnings of $1.60 per share from the same period last year. The company reported quarterly sales of $1.48 billion which met the analyst consensus estimate. This is a 14.73 percent increase over sales of $1.29 billion the same period last year.

Full Year 2024 Moody’s Corporation Guidance as of February 13, 2024 MOODY’S CORPORATION Current guidance 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 Operating Margin 37% to 39% Adjusted Operating Margin (1) 44% to 46% Interest Expense, Net $240 – $260 million Effective Tax Rate 22% to 24% Diluted EPS $9.45 to $10.20 Adjusted Diluted EPS (1) $10.25 to $11.00 Operating Cash Flow $2.3 to $2.5 billion Free Cash Flow (1) $1.9 to $2.1 billion Share Repurchases Approximately $1.0 billion (subject to available cash, market conditions, M&A opportunities, and other ongoing capital allocation decisions) Moody’s Analytics (MA) Current guidance MA Revenue Increase of approximately 10% ARR (2) Increase in the low-double-digit percent range MA Adjusted Operating Margin 30% to 31% Moody’s Investors Service (MIS) Current guidance MIS Revenue Increase in the high-single-digit to low-double-digit percent range MIS Adjusted Operating Margin 55.5%

Moody’s (MCO) reported Q4 adjusted earnings Tuesday of $2.19 per diluted share, compared with $1.60 a year earlier. Analysts polled by Capital IQ expected $2.32. Revenue for the quarter ended Dec. 31 was $1.48 billion, compared with $1.29 billion a year earlier. Analysts surveyed by Capital IQ expected $1.49 billion. For full-year 2024, the company said it expects adjusted diluted EPS of $10.25 to $11.00, and expects revenue to grow in the high-single-digit to low-double-digit percent range. Analysts polled by Capital IQ are expecting adjusted EPS of $11.15 on revenue of $6.52 billion.

Shares of Moody’s fell after the company logged lower earnings and revenue in the fourth quarter than analysts had been expecting. The New York credit-ratings and research firm posted adjusted earnings, which strip out one-time items, of $2.19 a share for the fourth quarter. Analysts had been projecting $2.33 a share, according to FactSet. Quarterly revenue jumped 15% from a year ago to $1.48 billion but was shy of forecasts for $1.49 billion, according to FactSet.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We increase our 12-month target price by $60 to $460, on a forward P/E of 36.3x our 2025 earnings estimate, a premium to Moody’s Corporation (NYSE:MCO)’s three- and 10-year forward historical averages of 31.4x and 26.0x, respectively, given expectations for margin expansion and rapid earnings growth. We lower our 2024 EPS estimate by $0.39 to $11.14 and start 2025’s at $12.63. MCO posted Q4 adjusted EPS of $2.19 versus $1.60, $0.13 below consensus on revenue of $1.48B (+15% Y/Y). MIS (the ratings segment) saw revenue surge 19% as debt capital markets improved from previous depressed levels. Decelerating growth (11% in 4Q vs. 13% in 3Q) was seen in MA (the analytics segment), as a rising demand for MCO’s ratings data feeds was met with a slowdown in

NEW YORK, NY – February 13, 2024 – Moody’s Corporation (NYSE: MCO) today announced results for the fourth quarter and full year 2023, and provided its outlook for full year 2024. REVENUE Fourth Quarter 2023 •Revenue increased 15%, or 13% on a constant currency basis1, from the prior-year period. •MA’s revenue grew 11%, or 10% on a constant currency basis1, from the prior-year period, with all lines of business achieving double-digit revenue growth. •MIS’s revenue grew 19%, or 17% on a constant currency basis1, from the prior-year period, as debt capital markets continued to recover and the outlook for macroeconomic conditions improved. Full Year 2023 •Revenue increased to $5.9 billion, up 8% from the prior year. •MA’s revenue grew 10% from the prior year, to over $3 billion, now representing 52% of MCO’s total revenue. •MIS’s revenue grew 6% as markets stabilized and issuers acclimatized to the higher interest rate environment. •Foreign

The following is a summary of the Moody’s Corporation (MCO) Q4 2023 Earnings Call Transcript: Financial Performance: Moody’s reported an 8% increase in revenue and a 16% rise in adjusted diluted EPS in 2023. The company’s adjusted recurrent revenue growth was 10% with mid-90% retention rates. For the upcoming year, Moody’s expects an adjusted diluted EPS in the range of $10.25 to $11, assuming a tax rate of 22% to 24%. The 2024 growth forecast for Moody’s Analytics is around 10% revenue growth with adjusted recurring revenue growth in low double digits. Increased budgeted operating expenses for the next year by an extra $60 million are planned. Moody’s projects a 2024 revenue growth in the high single to low double-digit percent range. The predicted adjusted operating margin for 2024 lies between 44% to 46%. The company anticipates a free cash flow between $1.9 billion to $2.1 billion in 2024. Business

Moody’s (MCO) strategic investments across multiple areas could help the company deliver growth in the mid term despite weighing down on its margins currently, RBC Capital Markets said in a note emailed Wednesday. According to the investment firm, Moody’s $60 million investments in areas including generative AI and new products and enhanced offerings could end up delivering low-to-mid teens revenue growth in the Moody’s Analytics business segment over the mid term. The firm is also expecting a “potential upside” in the Moody’s Investors Service segment from capital market activity, which, along with growth in the Moody’s Analytics division “bodes well for the stock.” The firm has an outperform rating on the company’s stock with a price target of $450.