February 27, 2024 9:24 am
Moody’s Reports Increase in 4Q Net Income and Forecasts 2024 Earnings Growth with Stable Markets and Economy

Moody’s Corp. has reported a significant increase in fourth-quarter net income and has forecasted further growth in 2024. The company’s bond-rating and financial-research arms are benefiting from a rebound in credit markets and stabilizing economic conditions.

In the fourth quarter, Moody’s earnings rose to $340 million, from $246 million a year earlier, marking a substantial increase. Excluding certain one-off items, the company logged fourth-quarter earnings of $2.19 a share, which fell short of the average analyst estimate of $2.33 a share. Fourth-quarter revenue also surged 15% to $1.48 billion, although this was slightly below the average analyst target of $1.49 billion.

The Moody’s Analytics research unit experienced an 11% increase in revenue to $796 million, while the Moody’s Investors Service credit-ratings unit saw a 19% rise to $684 million, attributed to a rebound in Treasury markets and a brightening economic outlook. Bank-loan rating demand was the strongest since early 2022.

For 2024, Moody’s estimated earnings in a range between $9.45 a share and $10.20 a share, or between $10.25 a share and $11 a share on an adjusted basis. In 2023, Moody’s recorded earnings of $8.73 a share, indicating anticipated growth.

Moody’s based its earnings projection on an assumption of U.S gross-domestic product expansion of 1%-to-2%, and a decline in the U

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