Sat. Mar 2nd, 2024
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 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 surged 15% to $1.48 billion, although this was slightly below the average analyst target of $1.49 billion. The company’s research unit experienced an 11% increase in revenue to $796 million, while the credit-ratings unit saw a 19% rise to $684 million, attributed to a rebound in Treasury markets and a brightening economic outlook.

Moody’s stated that bank-loan rating demand was the strongest since early 2022, reflecting the positive outlook for the economy. 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.

The company 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

By Editor

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