fazon1 Duopolies are one of the best places to be invested in. One of the duopolies I have exposure to is the credit rating business. Alright, it actually has three main players, but two of them do get the lion's share of the market. I am talking about S&P Global (SPGI) and Moody's Corporation (NYSE:MCO). I currently own a stake in the former, initiated in October 2023 and then increased after its Q1 earnings report, which made it trade down a bit. At the same time, I keep a close eye on Moody's, as I c ...

Core Insights - Moody's is expected to report strong revenue growth in Q2 2024, particularly in its Corporate Finance line, which is the largest revenue contributor within the Moody's Investors Service division [1] - The overall revenue estimate for the MIS division indicates an 18.7% year-over-year increase, reflecting robust issuance activity in various bond categories [2][5] Corporate Finance Performance - The Zacks Consensus Estimate for Corporate Finance revenues is $493 million, representing a 35.1% increase from the prior-year quarter [1] - All sub-categories within non-financial corporate bonds, including investment grade, high yield, and leveraged loans, showed year-over-year gains [1] Other Business Lines - The Public, Project, and Infrastructure Finance business is estimated to generate $140 million, indicating a 10.2% year-over-year increase [2] - Structured Finance revenues are expected to reach $120 million, reflecting a 17.6% growth from the previous year [2] Moody's Analytics Division - Revenues from the Moody's Analytics division are projected to be $821 million, marking a 9.3% increase from the prior-year quarter [3] - The division's growth is supported by rising demand for analytics and strategic acquisitions [3] Earnings Expectations - The consensus estimate for Moody's Q2 earnings is $3.02, which has been revised upward by 5.6% over the past week, indicating a 31.3% rise from the year-ago figure [4] - The company has a positive Earnings ESP of +1.07% and a Zacks Rank of 2 (Buy), suggesting a high likelihood of beating earnings estimates [4] Overall Revenue Growth - The total sales estimate for Moody's stands at $1.74 billion, suggesting a 16.3% year-over-year growth [5]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps identify effective metrics for assessing momentum in stocks [1] Group 2: Moody's Performance Metrics - Moody's (MCO) currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [2] - Over the past week, MCO shares increased by 3.17%, outperforming the Zacks Financial - Miscellaneous Services industry, which rose by 2.23% [3] - In the last quarter, MCO shares rose by 19.63%, and over the past year, they increased by 26.84%, compared to the S&P 500's gains of 11.65% and 25.12%, respectively [4] Group 3: Trading Volume and Earnings Outlook - MCO's average 20-day trading volume is 613,583 shares, which is a bullish indicator when combined with rising stock prices [4] - In the past two months, 8 earnings estimates for MCO have been revised upwards, raising the consensus estimate from $10.76 to $11.02 [5] - For the next fiscal year, 5 estimates have increased while 1 has decreased, indicating a positive earnings outlook [5] Group 4: Conclusion - Given the positive momentum indicators and earnings outlook, MCO is positioned as a strong buy candidate for investors seeking short-term gains [6]

Core Viewpoint - Moody's is expected to report a year-over-year increase in earnings driven by higher revenues, with a consensus EPS estimate of $2.95, reflecting a +28.3% change, and revenues projected at $1.69 billion, up 13.3% from the previous year [1][2]. Earnings Expectations - The upcoming earnings report for Moody's is anticipated to be released on July 23, and the stock may rise if actual results exceed expectations, while a miss could lead to a decline [1]. - The Most Accurate Estimate for Moody's is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +2.80%, indicating a bullish outlook from analysts [5][6]. Estimate Revisions - The consensus EPS estimate for Moody's has been revised 0.06% lower over the last 30 days, reflecting a reassessment by covering analysts [2]. - In contrast, Applied Digital Corporation has seen a significant year-over-year EPS change of -242.9%, with an Earnings ESP of -15.46% and a Zacks Rank of 5, indicating a challenging outlook [9]. Earnings Surprise History - Moody's has a history of beating consensus EPS estimates, having exceeded expectations in three out of the last four quarters, with a notable surprise of +10.13% in the last reported quarter [7]. Industry Comparison - Applied Digital Corporation, another player in the financial services sector, is expected to report a significant decline in EPS, which contrasts with Moody's positive outlook [9].

Moody’s Corp. (MCO) has fully acquired Global Credit Rating Company Limited (GCR). This move expands the company’s footprint in Africa’s domestic credit markets. The terms of the deal were kept under wraps.In 2022, Moody’s initially announced the acquisition of a majority stake in GCR Ratings.Global Credit Rating has a presence across the continent, including in countries like Nigeria, South Africa, Kenya, Senegal and Mauritius. The firm rates a broad range of entities, including financial institutions, cor ...

Core Viewpoint - Moody's has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Earnings Estimate Revisions for Moody's - Moody's is projected to earn $10.79 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 9% [5]. - Over the past three months, the Zacks Consensus Estimate for Moody's has risen by 1.2% [5]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [4]. - Moody's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for price appreciation in the near term [7].

Moody’s Corp. (MCO) and MSCI Inc. (MSCI) have entered into an agreement to establish a strategic partnership to capitalize on each other’s strengths to enhance transparency in environmental, social, and governance (ESG) and sustainability in markets and make better decisions. The financial terms of the deal remain confidential.Moody’s will utilize MSCI’s sustainability data and models, which are widely used by the world’s major asset managers and asset owners. The agreement includes MSCI’s industry-leading ...

Jitalia17 Introduction It's time to talk about one of the dividend stock stocks on my 28-stock watch list. On that watch list, I'm holding most of the companies I discuss on Seeking Alpha for potential inclusion in my dividend growth portfolio, which currently holds 21 individual stocks. One of my favorites on that list is the Moody's Corporation (NYSE:MCO), a stock I haven't covered since February 20, when I went with the somewhat boring title "Moody's Poised To Benefit From A Diversified Business Model." ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form10-Q (Mark one) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ☑ EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 Or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ☐ EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-14037 ____________________ Moody’s Corporation (Exact name of registrant as specified in its charter) Delaware 13 ...

Financial Data and Key Metrics - Revenue growth of 21% in Q1 2024, driven by strong issuance environment and demand for risk assessment solutions [8] - Adjusted diluted EPS of $3.37 for the quarter, reflecting strong top-line performance and margin expansion [8] - MIS revenue grew 35% YoY, with transactional revenue up 57% and leveraged finance markets revenue up 144% [10] - Moody's Analytics (MA) reported 10% ARR growth, with double-digit growth in Decision Solutions and Data & Information [9] - Adjusted operating margin for MIS reached 64.6%, while MA achieved 29.7% [8][28] Business Line Performance - MIS delivered its second-highest quarterly revenue on record, driven by strong issuance in corporate finance (up 49%) and financial institutions (up 37%) [25][26] - MA revenue grew 8%, with Data & Information up 13% and KYC & compliance solutions up 24% [27] - Research & Insights revenue grew 3%, impacted by timing of revenue recognition and modest attrition in CreditView [27] - RMS (Risk Management Solutions) ARR expected to grow at a low double-digit pace in 2024, driven by SaaS migration and cross-selling strategies [15] Market Performance - Strong issuance in Q1 benefited from pull-forward activity due to favorable market conditions, with uncertainties around U.S. elections, Middle East tensions, and inflation [12][13] - Global economy resilience reflected in declining high-yield default rates, projected to range between 3% to 3.5% by year-end [13] - M&A activity picking up, with private equity funds seeking exits and deploying capital, potentially driving issuance growth [13] Strategic Direction and Industry Competition - Investments in analytical talent, technology enablement, and GenAI capabilities to maintain leadership in risk assessment [8][16] - GenAI-enabled solutions categorized into navigators, skills, and assistance, with a focus on automation and productivity for customers [17][18] - Continued focus on transitioning from legacy on-premise revenue to SaaS recurring revenue to expand margins [77] Management Commentary on Operating Environment and Future Outlook - Management cautious about full-year outlook due to uncertainties in the back half of 2024, including U.S. elections and geopolitical tensions [12][13] - Updated guidance centers on the upper end of the ranges for issuance and revenue growth, with potential upside from M&A activity [13][47] - FX assumptions adjusted due to U.S. dollar appreciation, impacting MA revenue outlook [31] Other Important Information - Free cash flow conversion to GAAP net income exceeded 120%, with quarterly free cash flow of nearly $700 million, the highest on record [24] - Shareholder returns expected to exceed $1.6 billion in 2024 through share repurchases and dividends [9] - New CFO Noemie Heuland emphasized the company's strong financial profile, including 13% adjusted diluted EPS growth and high return on tangible assets [22] Q&A Session Summary Question: MA performance and customer pressures [33] - MA revenue growth of 8% in Q1, with strong demand for data solutions and KYC, but Research & Insights impacted by timing and SaaS transition [34] - Retention rate remains strong at 94%, with ARR growth expected to reach low double digits for the full year [34][35] Question: End-market exposures and client pressures in MA [38] - Financial institutions focused on digitization and automation, with GenAI seen as a way to accelerate transformation and address cost pressures [39][40] - Demand for 360-degree view of business relationships, driven by regulatory requirements and supplier resilience, supports MA's value proposition [41][42] Question: MIS issuance guidance and M&A activity [43] - Significant pull-forward of issuance in Q1, with potential upside from M&A activity and sponsor-backed deals [45][47] - Downside risks include inflation, Fed rate cuts, and geopolitical tensions, leading to a measured outlook for issuance [48] Question: Pull-forward of refinancing issuance [71] - Majority of Q1 issuance was refinancing, with potential for new money transactions to support M&A in the back half of the year [72][75] Question: AI frameworks and monetization strategies [54] - GenAI-enabled solutions categorized into navigators, skills, and assistance, with different monetization models, including subscription increases and consumption-based pricing [55][58] Question: Margins and reinvestment plans [60] - MIS adjusted operating margin increased by 50 bps for the full year, while MA margin remains unchanged despite revenue headwinds [61] - No significant upsizing of the investment program despite strong Q1 performance [62] Question: MA revenue guide change and FX impact [63] - MA revenue outlook adjusted primarily due to FX impact from U.S. dollar appreciation, with ARR growth expectations unchanged [63][65] Question: Research & Insights performance and outlook [66] - ARR growth in Research & Insights expected to accelerate in the back half of 2024, driven by CreditView coverage expansion and Research Assistant adoption [67][69] Question: Private credit as a percentage of MIS revenue [99] - Private credit-related revenue is growing quickly but remains a smaller portion of MIS revenue, with significant relationships with alternative asset managers [100][101] Question: KYC growth and ARR trends [103] - KYC revenue growth accelerating, driven by product innovation and broadening demand for solutions beyond traditional KYC [104][106] - ARR growth remains strong, reflecting underlying business trends [107]