NYSE$MCO

Moody's Corp. · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Moody's reported strong first-quarter results, marked by significant revenue growth and improved earnings per share.

Moody's Corporation reported a strong first quarter in 2024, with revenue increasing by 21% to $1.8 billion. Moody's Investors Service (MIS) revenue grew by 35%, and Moody's Analytics (MA) revenue increased by 8%. The company's diluted EPS was $3.15, and adjusted diluted EPS was $3.37. Moody's has narrowed its Adjusted Diluted EPS guidance to be in the range of $10.40 to $11.00.

  • Revenue increased by 21% compared to the prior-year period.
  • Moody’s Investors Service revenue grew 35%, driven by improved market conditions.
  • Moody’s Analytics revenue increased by 8%, with ARR growing by 10%.
  • Adjusted Diluted EPS guidance narrowed to a range of $10.40 to $11.00.

Headline financials

Total Revenue

$1.79B

Previous: $1.47B+21.5%
EPS

$3.15

Previous: $2.99+5.4%
Operating Margin

44.8%

Previous: 37.7%+18.8%
Adjusted Operating Margin

50.7%

Previous: 44.6%+13.7%
Capital Expenditures

-$78M

Previous: -$73M-6.8%
Free Cash Flow

$499M

Previous: $428M+16.6%
Net Income

$577M

Previous: $501M+15.2%
Operating Income

$801M

Previous: $554M+44.6%
Gross Profit

$1.32B

Previous: $1.04B+26.6%
Cash & Equivalents

$2.48B

Previous: $2.12B+16.8%
Total Assets

$15B

Previous: $14.7B+2.0%
Stock-Based Comp

$53M

Previous: $47M+12.8%

Revenue & EPS history

Moody's · Revenue · Quarterly

$1.79B

Q1 2024+21.5%vs Q1 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Moody's · $1.47B total across 7 segments · Q3 2023

  • Decision Solutions
    $354M+8.9%
  • Corporate Finance
    $346M+24.9%
  • Research & Insights
    $222M+20.7%
  • Data & Information
    $200M+13.6%
  • Financial Institutions
    $126M+15.6%
  • Public, Project, and Infrastructure Finance
    $115M+25.0%
  • Structured Finance
    $102M+1.0%

Forward guidance

Moody's updated outlook for full year 2024 reflects assumptions about numerous factors that could affect its business and is based on currently available information reviewed by management.

Tailwinds

  • 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
  • Adjusted Operating Margin: 44% to 46%
  • Operating Cash Flow: $2.3 to $2.5 billion
  • Free Cash Flow: $1.9 to $2.1 billion

Headwinds

  • Operating Margin: 37% to 39%
  • Interest Expense, Net: $240 - $260 million
  • Effective Tax Rate: 22% to 24%
  • Diluted EPS: $9.55 to $10.15
  • Share Repurchases: Approximately $1.0 billion (subject to available cash, market conditions, M&A opportunities, and other ongoing capital allocation decisions)

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.1%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+1.0%

Avg return

30 days after

60%

44 / 73 earnings

Positive

+13.5%

Q2 2012

Best reaction

-8.9%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.8%+0.3%-2.3%
Q4 2025+6.6%+3.3%+2.8%
Q3 2025-2.6%+2.1%-1.1%
Q2 2025+0.0%-1.8%-1.7%
Q1 2025+4.0%+6.1%+14.1%
Q4 2024+4.4%+2.8%-11.6%
Q3 2024-3.7%-5.0%-1.9%
Q2 2024-3.7%-0.4%+6.6%
Q1 2024+2.1%+5.7%+6.5%
Q4 2023-8.6%-7.6%-4.4%
Q3 2023+1.5%+0.2%+18.6%
Q2 2023+0.7%-1.0%-7.2%
Q1 2023+0.8%+3.5%+2.3%
Q4 2022+2.9%+3.2%-7.6%
Q3 2022+4.9%+9.8%+21.6%
Q2 2022+1.0%+6.8%+5.3%
Q1 2022-2.2%-5.1%-10.8%
Q4 2021-3.2%-3.9%-11.3%
Q3 2021+2.9%-0.5%-2.2%
Q2 2021+0.6%-0.6%+0.7%
Q1 2021+1.1%+0.9%+2.7%
Q4 2020+0.6%+0.7%+4.7%
Q3 2020+0.4%+2.8%+5.9%
Q2 2020-3.5%-5.3%+1.0%
Q1 2020-5.2%-1.8%+4.9%
Q4 2019+0.7%+2.5%-21.4%
Q3 2019+0.1%-1.1%+2.8%
Q2 2019+6.8%+0.2%+6.6%
Q1 2019+2.4%+3.2%-1.9%
Q4 2018+2.6%+3.5%+7.9%
Q3 2018-8.9%-6.2%-3.1%
Q2 2018-8.0%-7.8%-6.7%
Q1 2018-1.5%-1.2%+5.7%
Q4 2017+4.7%+7.5%+11.8%
Q3 2017+0.7%+1.0%+5.4%
Q2 2017+5.0%+4.8%+2.6%
Q1 2017-2.3%-2.3%-0.5%
Q4 2016+2.4%+3.0%+1.6%
Q3 2016-4.9%-5.5%-7.0%
Q2 2016+1.3%+0.8%+0.3%
Q1 2016-3.1%
Q4 2015-8.9%
Q3 2015-5.0%
Q2 2015-1.3%
Q1 2015+0.8%
Q4 2014+5.0%
Q3 2014+2.3%
Q2 2014-1.6%
Q1 2014-1.6%
Q4 2013+3.3%
Q3 2013-3.7%
Q2 2013+3.6%
Q1 2013+4.9%
Q4 2012-3.2%
Q3 2012+5.3%
Q2 2012+13.5%
Q1 2012-1.0%
Q4 2011-0.6%
Q3 2011+2.0%
Q2 2011-2.2%
Q1 2011+0.3%
Q4 2010+0.4%
Q3 2010-0.2%
Q2 2010+1.4%
Q1 2009-7.5%
Q1 2010-2.8%
Q4 2007+2.2%
Q4 2009+2.2%
Q2 2009+2.2%
Q3 2008+2.0%
Q3 2009+2.0%
Q2 2008-4.9%
Q4 2008-4.9%

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