Moody’s Reports Increase in 4Q Net Income and Forecasts 2024 Earnings Growth with Stable Markets and Economy

Moody’s Corp. has reported a significant increase in fourth-quarter net income and has forecasted further growth in 2024. The company’s bond-rating and financial-research arms are benefiting from a rebound in credit markets and stabilizing economic conditions. In the fourth quarter, Moody’s earnings rose to $340 million, marking a substantial increase from $246 million a year earlier.

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.

For 2024, Moody’s estimated 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 recorded earnings of $8.73 a 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.

The positive outlook for Moody’s reflects its upward trajectory in 2024, with strong growth prospects for its bond-rating and financial-research arms driven by improving market conditions and increasing demand for its services

By Editor

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