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Moody’s Reports Increase in 4th Quarter Net Income and Anticipates Earnings Growth in 2024 as Markets and Economy Stabilize


Feb 13, 2024

Moody’s Corp. reported a significant increase in fourth-quarter net income and is projecting further growth in 2024. The company’s bond-rating and financial-research arms are expected to benefit from a rebound in credit markets and stabilizing economic conditions. The New York credit-ratings and research firm stated that fourth-quarter earnings rose to $340 million. This is compared to $246 million from a year earlier. Excluding certain one-off items, Moody’s recorded fourth-quarter earnings of $2.19 a share. This fell short of the average analyst estimate of $2.33 a share.

The fourth-quarter revenue saw a 15% surge to $1.48 billion. This is compared with the average analyst target of $1.49 billion. Revenue at its Moody’s Analytics research unit rose 11% to $796 million during the three-month period. Additionally, revenue at the Moody’s Investors Service credit-ratings unit rose by 19% to $684 million. Moody’s attributed this growth to a rebound in Treasury markets and a brighter economic outlook. The company stated that bank-loan rating demand was the strongest since early 2022.

For 2024, Moody’s projected 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 logged earnings of $8.73 a share. The company based its earnings projection on an assumption of U.S. gross-domestic product expanding by 1%-to-2% and a decline in the U.S. inflation rate to 2% by the year-end. However, there are risks to the outlook related to any impacts resulting from changes in international conditions, including conflicts in Russia-Ukraine and Israel and surrounding areas.

Moody’s is optimistic about its future growth potential and expects positive trends in the credit markets and economy to drive its performance in 2024.

By Editor

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