Moody's Corporation Reports Third Quarter 2024 Financial Results
Moody's Corporation (NYSE: MCO) has announced its financial results for the third quarter of 2024, showcasing a strong performance that exceeded market expectations.
Key Financial Metrics:
| Metric | 3Q 2024 Actual | 3Q 2023 Actual | YoY Change | Consensus Estimate | QoQ Change |
|---|---|---|---|---|---|
| Revenue | $1.81 billion | $1.47 billion | +23.2% | $1.73 billion | +4.9% |
| GAAP Diluted EPS | $2.93 | $2.11 | +38.9% | $2.86 | +3.0% |
| Adjusted Diluted EPS | $3.21 | $2.43 | +32.1% | $2.89 | +4.5% |
Moody's reported a 23.2% year-over-year increase in revenue, reaching $1.81 billion, surpassing the consensus estimate of $1.73 billion. The GAAP diluted earnings per share (EPS) rose to $2.93, exceeding the expected $2.86, while the adjusted EPS was $3.21, reflecting a 32.1% increase from the previous year. This robust performance highlights Moody's strong market position and operational efficiency.
Segment Revenue Performance:
| Segment | 3Q 2024 Revenue | YoY Change | Previous Guidance |
|---|---|---|---|
| Moody's Investors Service (MIS) | $1.0 billion | +41% | Not provided |
| Moody's Analytics (MA) | $831 million | +7% | Not provided |
The Moody's Investors Service segment saw a significant 41% increase in revenue, driven by a 70% rise in transactional revenue. Meanwhile, Moody's Analytics reported a 7% growth, underscoring the strength of its recurring revenue streams.
Operational Highlights:
| Operational Metric | 3Q 2024 | YoY Change |
|---|---|---|
| Operating Cash Flow | Increased by 29% | - |
Moody's operational cash flow increased by 29%, supported by a substantial growth in MIS transactional revenue.
Executive Commentary: Rob Fauber, President and CEO of Moody's, attributed the record-breaking revenue performance to the company's status as the 'Agency of Choice' and its strategic investments in innovation and customer insights.
Dividends and Share Repurchase Program: The Board of Directors declared a regular quarterly dividend of $0.85 per share, payable on December 13, 2024, to stockholders of record on November 22, 2024.
Forward Guidance: Moody's has raised its full-year 2024 guidance, projecting adjusted diluted EPS between $11.90 and $12.10, reflecting strong performance and future growth expectations.
Stock Price Movement: Following the earnings release, Moody's stock experienced a slight decline of 0.03%, reflecting a stable market reaction to the positive earnings report.
Overall, Moody's Corporation has demonstrated strong financial health and strategic foresight, positioning itself well for continued growth in the capital markets industry.
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