Moody’s Corporation Beats Expectations with $1.67B Q4 Revenue

Moody’s Corporation (NYSE: MCO) reported a robust end to 2024, showcasing significant growth in its financial metrics. The company’s revenue for the fourth quarter reached $1.7 billion, marking a 13% increase compared to the same period last year.

This growth was driven by strong performances from both Moody’s Analytics and Moody’s Investors Service, with revenues of $863 million and $809 million, respectively, representing increases of 8% and 18%. The corporation’s earnings per share (EPS) for the quarter were $2.17, a 17% rise from the previous year, while the adjusted diluted EPS stood at $2.62, reflecting a 20% increase.

Throughout 2024, Moody’s maintained a strong trajectory, with total revenue reaching $7.1 billion, a 20% increase from the previous year. The company’s full-year diluted EPS was $11.26, up 29%, and adjusted diluted EPS was $12.47, a 26% rise. The Moody’s Investors Service segment, in particular, experienced a 33% revenue growth, driven by robust issuance activities and a favorable market environment. Moody’s Analytics also contributed significantly, with an 8% revenue increase, supported by a 9% growth in annualized recurring revenue (ARR).

Moody’s Corporation Reports Better than Expected Fourth-Quarter Results

The fourth quarter results for Moody’s Corporation exceeded market expectations. Analysts had anticipated an EPS of $2.3 and revenue of $1.59 billion for the quarter. However, Moody’s delivered an EPS of $2.17 and revenue of $1.67 billion, surpassing the revenue forecast by $110 million. This outperformance was attributed to the strong demand for Moody’s services across various segments, particularly in the areas of corporate finance and structured finance, which saw significant increases in issuance volumes and revenue.

Moody’s ability to outpace expectations is reflective of its strategic positioning and the effectiveness of its operational strategies. The company’s focus on enhancing its analytics capabilities and expanding its product offerings has enabled it to capture a larger share of the market.

The robust growth in its Moody’s Investors Service segment, which saw a 33% revenue increase for the year, underscores the strength of its credit rating services and the continued demand for its expertise in navigating complex financial markets.

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Moody’s Expects Overall 2025 Adj. Diluted EPS Between $14.00 and $14.50

Looking ahead to 2025, Moody’s Corporation has set optimistic projections, anticipating continued growth across its segments. The company expects overall revenue to increase in the high-single-digit percent range, with adjusted diluted EPS projected to be between $14.00 and $14.50. This guidance suggests a low-to-mid-teens growth in EPS, building on the strong performance in 2024.

Moody’s also plans to continue investing in its platform and product innovations to maintain its competitive edge and capitalize on emerging market opportunities.

Moody’s Analytics is expected to see revenue growth in the high-single-digit percent range, with ARR projected to increase in the high-single-digit to low-double-digit percent range. The Moody’s Investors Service segment is also forecasted to achieve revenue growth in the mid-to-high-single-digit percent range, supported by favorable market conditions and ongoing demand for credit ratings.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.