Financial Data and Key Metrics Changes - Moody's reported a 23% increase in revenue for Q3 2024, reaching $1.8 billion, with adjusted operating margin at approximately 48% and adjusted diluted EPS growth of 32% [5][18] - The ratings business experienced a remarkable 41% increase in revenue compared to the prior year, driven by strong issuance activity [5][6] - Free cash flow conversion rate exceeded 100% of net income, indicating strong cash generation [18] Business Line Data and Key Metrics Changes - Moody's Analytics (MA) achieved 7% overall revenue growth, with 9% growth in annual recurring revenue (ARR) [6][19] - Decision Solutions, which includes banking, insurance, and KYC, reported 12% ARR growth, contributing significantly to MA's performance [6][20] - The ratings segment saw transactional revenue growth of 70%, significantly outpacing global rated issuance growth of 51% [5][18] Market Data and Key Metrics Changes - The issuance environment in September set a new record with over $85 billion issued across 61 deals in the first week [5] - Spec-grade refi walls exceeded $2 trillion, up 19% from the previous study, indicating strong future issuance potential [9] - The upcoming four-year maturity walls are projected to grow by 11%, amounting to nearly $5 trillion, which is a record high [8][9] Company Strategy and Development Direction - Moody's is focusing on expanding its footprint in emerging and domestic debt markets, particularly in Asia, Africa, and Latin America [13] - The company is investing in sustainable finance and transition finance, anticipating a rise in global clean energy investments to around $4.5 trillion annually by 2030 [12] - The integration of RMS into Moody's Insurance Solutions is expected to enhance service offerings and market position in the insurance sector [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durable drivers of growth for the ratings business, citing both cyclical and structural trends [8][10] - The outlook for issuance remains positive, supported by declining spec-grade default rates and expectations of lower interest rates [34][35] - Management acknowledged potential headwinds from macroeconomic factors and geopolitical events but remains optimistic about the overall issuance environment [34][35] Other Important Information - The company raised its guidance for MIS revenue growth to the high 20s percentage range and adjusted operating margin to 59% to 60% [24][25] - The incentive compensation accruals for Q3 were approximately $150 million, reflecting a 54% increase year-over-year [65] Q&A Session Summary Question: Data and information ARR slowdown - Management indicated that the slowdown was due to lower renewal values from federal government contracts and customer transitions to MSCI [27][28] Question: Near and midterm issuance tailwinds - Management believes that the balance of tailwinds to headwinds for issuance in 2025 is likely favorable, with several supportive factors in place [32][34] Question: Debt velocity - Debt velocity has been improving, with current levels still below historical averages, indicating potential for future issuance growth [37] Question: Research and insights ARR growth - Management noted that ARR growth in research and insights was impacted by stress in the banking sector, but they expect a strong pipeline moving forward [40][41] Question: Moody's Analytics medium-term targets - Management plans to update medium-term targets in February, focusing on expanding relationships with banks and insurers [54][56] Question: Pull forward impact on issuance growth - Management noted that while there has been a pull forward in spec-grade issuance, overall maturity levels remain favorable for future growth [58][61] Question: Ratings outlook and revenue growth - Management expects a decline in fourth-quarter issuance compared to the prior year due to intra-year pull forward but has lifted the outlook for Q4 issuance [67]

Third Quarter 2024 Earnings Call Chartis RiskTech100 2025 #J October 22, 2024 Introduction Shivani Kak HEAD OF INVESTOR RELATIONS Third Quarter 2024 - Earnings Call 2 Disclaimer Certain statements contained in this document are forward-looking statements and are based on future expectations, plans and prospects for Moody's business and operations that involve a number of risks and uncertainties. Such statements involve estimates, projections, goals, forecasts, assumptions and uncertainties that could cause ...

Core Insights - Moody's reported revenue of $1.81 billion for the quarter ended September 2024, reflecting a 23.2% increase year-over-year [1] - Earnings per share (EPS) reached $3.21, up from $2.43 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $1.73 billion by 4.72%, while the EPS surpassed the consensus estimate of $2.89 by 11.07% [1] Revenue Performance - Moody's Analytics revenue from total external customers was $831 million, slightly below the average estimate of $837.22 million, marking a 7.1% year-over-year increase [1] - Moody's Investor Services revenue from total external customers was $982 million, exceeding the average estimate of $895.29 million, representing a significant 41.1% year-over-year increase [1] - Revenue from Moody's Analytics - Decision Solutions was $383 million, close to the estimate of $386.65 million, with an 8.2% year-over-year increase [1] - Revenue from Moody's Analytics - Data and Information was $213 million, slightly below the estimate of $218.05 million, showing a 6.5% year-over-year increase [1] - Revenue from Moody's Analytics - Research and Insights was $235 million, slightly above the estimate of $233.32 million, with a 5.9% year-over-year increase [1] - Corporate finance revenue from Moody's Investor Services was $515 million, significantly above the estimate of $448.26 million, reflecting a 48.8% year-over-year increase [1] - Structured finance revenue from Moody's Investor Services was $135 million, exceeding the estimate of $120.95 million, with a 32.4% year-over-year increase [1] - Public, project, and infrastructure finance revenue from Moody's Investor Services was $154 million, above the estimate of $144.24 million, representing a 33.9% year-over-year increase [1] Stock Performance - Moody's shares have returned +1.7% over the past month, compared to the Zacks S&P 500 composite's +2.8% change [2] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance against the broader market in the near term [2]

Moody's (MCO) reported third-quarter 2024 adjusted earnings of $3.21 per share, which handily outpaced the Zacks Consensus Estimate of $2.89. The bottom line surged 32% from the year-ago quarter figure.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Robust global bond issuance volumes and steady demand for analytics supported Moody’s results. The company’s liquidity position was robust during the quarter. However, an increase in operating expenses posed a headwind.After considering ...

Moody's (MCO) came out with quarterly earnings of $3.21 per share, beating the Zacks Consensus Estimate of $2.89 per share. This compares to earnings of $2.43 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.07%. A quarter ago, it was expected that this credit ratings agency would post earnings of $3.06 per share when it actually produced earnings of $3.28, delivering a surprise of 7.19%.Over the last four quarters, the comp ...

MOODY'S CORPORATION REPORTS RESULTS FOR THIRD QUARTER 2024 NEW YORK, NY - October 22, 2024 - Moody's Corporation (NYSE: MCO) today announced results for the third quarter of 2024, and updated its outlook for full year 2024. | --- | --- | --- | |---------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------| | Moody's Corporation (MCO) Revenue | THIRD QUARTER SUMMARY FINANCIALS \nMoody's Analytics (MA) Revenue | ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Moody's (MCO) , which belongs to the Zacks Financial - Miscellaneous Services industry, could be a great candidate to consider. This credit ratings agency has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 8.66%. For the most r ...

In its upcoming report, Moody's (MCO) is predicted by Wall Street analysts to post quarterly earnings of $2.82 per share, reflecting an increase of 16.1% compared to the same period last year. Revenues are forecasted to be $1.71 billion, representing a year-over-year increase of 16.3%.The consensus EPS estimate for the quarter has undergone an upward revision of 1.5% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial es ...

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, it's pretty easy to find cutting-edge growth stocks with the ...

Moody's (MCO) has been on a downward spiral lately with significant selling pressure. After declining 5.1% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is ove ...