NYSE$MCO

Moody's Corp. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Moody's reported a strong second quarter in 2024, marked by double-digit revenue growth and solid performance across both Moody's Analytics (MA) and Moody's Investors Service (MIS).

Moody's Corporation reported impressive results for the second quarter of 2024, with revenue increasing by 22% to $1.8 billion. The company's diluted EPS rose by 47% to $3.02, and adjusted diluted EPS increased by 43% to $3.28. The strong performance was driven by growth in both Moody's Analytics (MA) and Moody's Investors Service (MIS), with MIS achieving a 36% revenue increase.

  • Revenue increased by 22% year-over-year to $1.8 billion.
  • Diluted EPS increased by 47% year-over-year to $3.02.
  • Adjusted Diluted EPS increased by 43% year-over-year to $3.28.
  • MIS revenue grew by 36%, driven by heightened issuance activity.

Headline financials

Total Revenue

$1.82B

Previous: $1.49B+21.6%
EPS

$3.02

Previous: $2.30+31.3%
Operating Margin

42.7%

Previous: 36.8%+16.0%
Adjusted Operating Margin

49.6%

Previous: 43.7%+13.5%
Capital Expenditures

-$171M

Previous: -$127M-34.6%
Free Cash Flow

$381M

Previous: $250M+52.4%
Net Income

$552M

Previous: $377M+46.4%
Operating Income

$775M

Previous: $550M+40.9%
Gross Profit

$1.35B

Previous: $1.07B+26.2%
Cash & Equivalents

$2.64B

Previous: $2.28B+15.7%
Total Assets

$15B

Previous: $14.7B+2.2%
Stock-Based Comp

$56M

Previous: $50M+12.0%

Revenue & EPS history

Moody's · Revenue · Quarterly

$1.82B

Q2 2024+21.6%vs Q2 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 its outlook for full year 2024, anticipating revenue growth in the low-teens percent range and adjusted diluted EPS between $11.00 and $11.40.

Tailwinds

  • U.S. inflation rate to decline towards 2.0% by mid-2025
  • Global MIS 2024 rated issuance to increase in the range of 20% to 25%
  • Operating cash flow between $2.4 to $2.6 billion
  • Free cash flow between $2.0 to $2.2 billion
  • Share repurchases approximately $1.3 billion

Headwinds

  • Global high yield default rate to be in the range of 3.5% - 4.0% by year-end
  • Euro area inflation rate large economies to decline towards 2.0% by mid-2025
  • Global policy rates to remain elevated, with some gradual rate reductions in the second half of 2024
  • U.S. high yield spreads to fluctuate around 350 - 450 bps, with periodic volatility
  • U.S. unemployment rate to fluctuate around 4.0% during the year

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 Q2 2024

Historical avgQ2 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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