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In 2024, Moody’s Corp. is forecasting significant growth in net income, thanks to a rebound in credit markets and stabilizing economic conditions. The company’s bond-rating and financial-research arms are benefiting from this positive outlook.

Moody’s reported a substantial increase in fourth-quarter earnings of $340 million, up from $246 million the previous year. However, the company logged earnings per share of only $2.19, which fell short of the average analyst estimate of $2.33 per share. Fourth-quarter revenue also surged 15% to $1.48 billion but 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.

Looking ahead, Moody’s estimated earnings for 2024 in a range between $9.45 per share and $10.20 per share or between $10.25 per share and $11 per share on an adjusted basis. In 2023, Moody’s recorded earnings of $8.73 per 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.S inflation rate to 2% by year-end. However, the company highlighted risks to the outlook, including potential impacts from changes in international conditions such as the Russia-Ukraine military conflict and the military conflict in Israel and surrounding areas.

Overall, Moody’s positive upward trajectory reflects a promising outlook for the company in 2024.

In summary:

Moody’s Corp has reported significant growth in fourth quarter net income due to stable economic conditions and credit market rebound.

Excluding certain one off items,

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