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

Moody’s Corp. has experienced significant growth in its fourth-quarter net income, with earnings rising to $340 million from $246 million the previous year. This represents a substantial increase of 37%. The company’s bond-rating and financial-research arms are benefiting from a rebound in credit markets and stabilizing economic conditions.

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.

Overall, Moody’s promising upward trajectory reflects its positive outlook for growth in 2024 and beyond, with strong demand for credit ratings services driving revenue growth across its business segments.

In conclusion, Moody’s Corp reported significant growth in fourth quarter net income which is expected to continue through 2024 due to increased demand for credit rating services driven by improving economic conditions and stable credit markets.

By Editor

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