We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Moody's (MCO) Q2 Earnings Beat on Solid Bond Issuance Volume
Read MoreHide Full Article
Moody's (MCO - Free Report) reported second-quarter 2024 adjusted earnings of $3.28 per share, which handily outpaced the Zacks Consensus Estimate of $3.06. The bottom line surged 43% from the year-ago quarter figure.
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 certain non-recurring items, net income attributable to Moody's was $522 million or $3.02 per share, up from $377 million or $2.05 per share in the prior-year quarter.
Revenues Up, Costs Rise
Quarterly revenues were $1.82 billion, which beat the Zacks Consensus Estimate of $1.75 billion. Also, the top line jumped 22% year over year.
Total expenses were $982 million, up 10% year over year.
Adjusted operating income of $902 million soared 38%. Adjusted operating margin was 49.6%, rising from 43.7% a year ago.
Solid Segment Performance
Moody’s Investors Service revenues surged 36% year over year to $1 billion. The rise was mainly driven by solid Corporate Finance, a favorable mix in Public, Project and Infrastructure Finance and improvement in Structured Finance revenues.
Moody’s Analytics revenues increased 7% to $802 million. This was mainly driven by robust demand for Moody’s proprietary data and unique analytical insights.
Strong Balance Sheet
As of Jun 30, 2024, Moody’s had total cash, cash equivalents and short-term investments of $2.7 billion, up from $2.19 billion as of Dec 31, 2023.
The company had $6.9 billion in outstanding debt and $1.25 billion in additional borrowing capacity under the revolving credit facility.
Share Repurchase Update
During the quarter, Moody's repurchased 0.7 million shares at an average price of $396.08 per share.
Solid 2024 Guidance
Moody’s now expects adjusted earnings to be in the range of $11.00-$11.40 per share, higher than the previous guidance of $10.40-$11.00.
On a GAAP basis, earnings are now projected to be within $9.95-$10.35 per share. Earlier, management expected GAAP earnings to be in the range of $9.55-$10.15 per share.
Moody’s now projects revenues to increase in the low-teens percent range, higher than the prior target of the high-single-digit to low-double-digit percent range.
Operating expenses are expected to rise high-single-digit percent range, a change from the mid-to-high-single-digit percent range.
Our Take
Moody’s remains well-positioned for growth on the back of a solid market position, strength in diverse operations and strategic acquisitions. However, elevated operating expenses and geopolitical and macroeconomic concerns are likely to hurt its financials.
Moody's Corporation Price, Consensus and EPS Surprise
Truist Financial’s (TFC - Free Report) second-quarter 2024 adjusted earnings of 91 cents per share handily surpassed the Zacks Consensus Estimate of 84 cents. The figure, however, declined 1.1% year over year.
TFC’s results benefited from higher adjusted non-interest income, lower provisions and a decline in adjusted expenses. However, a decrease in net interest income (NII) due to higher funding costs and lower average loan balance was the undermining factor.
Blackstone’s (BX - Free Report) second-quarter 2024 distributable earnings of 96 cents per share lagged the Zacks Consensus Estimate of 99 cents. The figure reflects a decline of 3.2% from the prior-year quarter.
Results were primarily hurt by an increase in GAAP expenses. Yet, a rise in segment revenues and improvement in the assets under management (AUM) balance were tailwinds for BX.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Moody's (MCO) Q2 Earnings Beat on Solid Bond Issuance Volume
Moody's (MCO - Free Report) reported second-quarter 2024 adjusted earnings of $3.28 per share, which handily outpaced the Zacks Consensus Estimate of $3.06. The bottom line surged 43% from the year-ago quarter figure.
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 certain non-recurring items, net income attributable to Moody's was $522 million or $3.02 per share, up from $377 million or $2.05 per share in the prior-year quarter.
Revenues Up, Costs Rise
Quarterly revenues were $1.82 billion, which beat the Zacks Consensus Estimate of $1.75 billion. Also, the top line jumped 22% year over year.
Total expenses were $982 million, up 10% year over year.
Adjusted operating income of $902 million soared 38%. Adjusted operating margin was 49.6%, rising from 43.7% a year ago.
Solid Segment Performance
Moody’s Investors Service revenues surged 36% year over year to $1 billion. The rise was mainly driven by solid Corporate Finance, a favorable mix in Public, Project and Infrastructure Finance and improvement in Structured Finance revenues.
Moody’s Analytics revenues increased 7% to $802 million. This was mainly driven by robust demand for Moody’s proprietary data and unique analytical insights.
Strong Balance Sheet
As of Jun 30, 2024, Moody’s had total cash, cash equivalents and short-term investments of $2.7 billion, up from $2.19 billion as of Dec 31, 2023.
The company had $6.9 billion in outstanding debt and $1.25 billion in additional borrowing capacity under the revolving credit facility.
Share Repurchase Update
During the quarter, Moody's repurchased 0.7 million shares at an average price of $396.08 per share.
Solid 2024 Guidance
Moody’s now expects adjusted earnings to be in the range of $11.00-$11.40 per share, higher than the previous guidance of $10.40-$11.00.
On a GAAP basis, earnings are now projected to be within $9.95-$10.35 per share. Earlier, management expected GAAP earnings to be in the range of $9.55-$10.15 per share.
Moody’s now projects revenues to increase in the low-teens percent range, higher than the prior target of the high-single-digit to low-double-digit percent range.
Operating expenses are expected to rise high-single-digit percent range, a change from the mid-to-high-single-digit percent range.
Our Take
Moody’s remains well-positioned for growth on the back of a solid market position, strength in diverse operations and strategic acquisitions. However, elevated operating expenses and geopolitical and macroeconomic concerns are likely to hurt its financials.
Moody's Corporation Price, Consensus and EPS Surprise
Moody's Corporation price-consensus-eps-surprise-chart | Moody's Corporation Quote
Currently, Moody’s carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Finance Stocks
Truist Financial’s (TFC - Free Report) second-quarter 2024 adjusted earnings of 91 cents per share handily surpassed the Zacks Consensus Estimate of 84 cents. The figure, however, declined 1.1% year over year.
TFC’s results benefited from higher adjusted non-interest income, lower provisions and a decline in adjusted expenses. However, a decrease in net interest income (NII) due to higher funding costs and lower average loan balance was the undermining factor.
Blackstone’s (BX - Free Report) second-quarter 2024 distributable earnings of 96 cents per share lagged the Zacks Consensus Estimate of 99 cents. The figure reflects a decline of 3.2% from the prior-year quarter.
Results were primarily hurt by an increase in GAAP expenses. Yet, a rise in segment revenues and improvement in the assets under management (AUM) balance were tailwinds for BX.