Core Viewpoint - Moody's reported mixed financial results for Q4 2023, with adjusted earnings per share of $2.19, missing estimates, but showing a 37% year-over-year increase. The company experienced growth in revenues and maintained a strong liquidity position, although it missed revenue estimates slightly [2][3]. Financial Performance - Adjusted earnings for Q4 2023 were $2.19 per share, below the Zacks Consensus Estimate of $2.34, but up 37% from the previous year [2] - Total revenues for Q4 2023 were $1.48 billion, missing the consensus estimate of $1.49 billion, but reflecting a 15% year-over-year growth [3] - For the full year 2023, adjusted earnings were $9.90 per share, missing estimates but growing 16% year-over-year, while total revenues increased by 8% to $5.92 billion [2][3] Segment Performance - Moody's Investors Service revenues grew 19% year-over-year to $684 million, driven by strong Corporate Finance and improvements in Structured Finance [4] - Moody's Analytics revenues increased 11% to $796 million, supported by double-digit growth across all business lines [4] Balance Sheet and Cash Flow - As of December 31, 2023, Moody's had total cash and short-term investments of $2.19 billion, up from $1.86 billion a year earlier [5] - The company had $7 billion in outstanding debt and $1.25 billion in additional borrowing capacity [5] Share Repurchase and Guidance - Moody's repurchased 0.6 million shares at an average price of $346.8 during the quarter [6] - For 2024, the company expects adjusted earnings in the range of $10.25-$11.00 per share and projects revenue growth in the high-single-digit to low-double-digit percent range [7] Cost Management and Restructuring - The 2022-2023 Geolocation Restructuring Program is expected to yield annualized savings of $145-$165 million, with cash outlays of $36 million anticipated through 2024 [9] Medium-Term Targets - Moody's aims for total revenue growth of at least 10% and adjusted operating margins in the low-50s range, with specific segment targets for revenue growth and operating margins outlined [10] Industry Context - Moody's operates within the Zacks Financial - Miscellaneous Services industry, where competitors like Lazard have shown positive performance, indicating a mixed outlook for the sector [13]

Group 1 - Moody's Corporation will have Stephen Tulenko, President of Moody's Analytics, present at a virtual session hosted by Bank of America on March 7, 2024 [1] - The event will start at 8:00 a.m. Eastern Time and will be available via live audio webcast [1] - The presentation will be conducted in accordance with Regulation FD, and senior management may utilize this content in future meetings with analysts and investors [1] Group 2 - Moody's Corporation is a global risk assessment firm that aids organizations in making informed decisions [2] - The company employs approximately 15,000 individuals across more than 40 countries, combining international presence with local expertise [2] - Moody's has over a century of experience in financial markets, focusing on transparency and informed decision-making [2]

Core Viewpoint - Moody's Corporation has released an updated management presentation for investors, detailing its financial results for Q4 and the full year of 2023, along with guidance for 2024 [1]. Group 1: Financial Results - The updated presentation includes information regarding the company's results for the three months and full-year ended December 31, 2023 [1]. - The presentation is made available on the company's investor relations website [1]. Group 2: Future Guidance - Moody's has provided its full-year 2024 guidance as of February 13, 2024, in the updated presentation [1]. - Senior management may utilize this updated presentation during meetings with analysts and investors [1]. Group 3: Company Overview - Moody's Corporation is a global risk assessment firm that aids organizations in making informed decisions [2]. - The company employs approximately 15,000 individuals across more than 40 countries, combining international presence with local expertise [2]. - Moody's has over a century of experience in financial markets, emphasizing transparency and informed decision-making [2].

Core Insights - Dividend-growth stocks combine the benefits of high-yielding stocks and growth stocks, providing potential for cash flow and capital appreciation over time [1] Group 1: Wingstop (WING) - Wingstop has gained 73% over the past year and 320% over the past five years, with a market cap of $8 billion [2] - The company reported 26.4% year-over-year revenue growth in Q3 2023, including a 66.9% increase in digital sales [2] - Wingstop has a net profit margin of 16.7% and a 46% year-over-year increase in net income [2] - The company raised its dividend by 15.8% in 2023 and has a history of special dividends, with $4 per share distributed in 2022 [3] Group 2: Moody's (MCO) - Moody's is a risk management and financial services company with consistent dividend growth, raising its quarterly dividend from $0.70 to $0.77 in 2023 [5] - The company is leveraging artificial intelligence to enhance its software, aiming to attract new clients and increase revenue per customer [5] - Moody's repurchased $278 million in shares and paid out $424 million in dividends during the first nine months of 2023 [5] - The stock trades at a forward price-to-earnings ratio of 35, with a highest price target of $455 per share indicating a 15% upside [6] Group 3: Walmart (WMT) - Walmart has delivered a 77% gain over the past five years and repurchased $1.3 billion in shares in the first nine months of fiscal 2024 [7] - The company reported a total revenue growth of 5.2% year-over-year, with 15% e-commerce growth in Q3 FY2024 [7] - Walmart raised its fiscal year sales growth guidance from 5% to 5.5% and increased its annual earnings per share estimate from $6.40 to $6.48 [7] - The company has a 1.35% dividend yield and recently increased its quarterly payout from $0.56 to $0.57 per share, with expectations for another increase soon [8]

Financial Data and Key Metrics Changes - Moody's reported an 8% revenue growth for 2023, with adjusted diluted EPS increasing by 16% [6][9] - The company achieved a recurring revenue base of over $4 billion, with a projected adjusted operating margin of 44% to 46% for 2024, indicating a 100 basis point improvement [9][23] Business Line Data and Key Metrics Changes - Moody's Analytics (MA) delivered an Annual Recurring Revenue (ARR) growth of 10%, with specific growth rates of 11% for decision solutions, 10% for data and information, and 7% for research and insights [6][7] - Moody's Investor Service (MIS) experienced a 19% growth in Q4 and a 6% growth for the full year, with corporate finance, financial institutions, and public project finance achieving double-digit revenue growth [7][21] Market Data and Key Metrics Changes - The company anticipates a constructive market environment in 2024, with expectations of mid to high single-digit growth in MIS rated issuance [21][22] - The Moody's Local initiative in Latin America saw organic revenue growth of 22% in 2023, highlighting strong demand in emerging markets [15] Company Strategy and Development Direction - Moody's is focusing on accelerating investments in three critical areas: GenAI, new product development, and technology platforming to capture growth opportunities [8][20] - The company aims to enhance its market position by expanding into new customer segments beyond financial services, with a 14% new sales compound annual growth rate over the last two years in corporate and public sectors [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in 2024, driven by strong demand for risk management tools and digital transformation solutions [6][21] - The company expects adjusted diluted EPS for 2024 to be in the range of $10.25 to $11, reflecting a 24% growth rate since 2022 [9][23] Other Important Information - Moody's announced the appointment of Noemie Heuland as the new Chief Financial Officer, effective April 1, 2024, bringing extensive experience in scaling high-growth companies [5][6] - The company received over 150 external accolades in 2023, reinforcing its market leadership in ratings and analytics [10] Q&A Session Summary Question: Incremental strategic investments in GenAI products and platforming - Management discussed the timing and expected benefits of investments in GenAI, indicating upfront costs but potential for significant long-term gains [26][27] Question: Normalized level of issuance - Management indicated that issuance levels are returning to normal, with expectations for 2024 to be slightly above long-term averages [31][32] Question: Cadence of issuance in 2024 - The company expects stronger issuance in the first half of 2024 compared to the second half, following historical patterns [35][38] Question: MIS margins and investments - Management clarified that while margins are expected to improve, investments in growth areas will impact margin flow-through [40][41] Question: ROI for strategic investments - Management emphasized that investments are focused on high-growth areas, with expectations for significant revenue growth from GenAI and enhanced solutions for corporate and public sectors [42][44] Question: Contribution of GenAI to revenue - Management indicated that the research and insights line will see the most significant contributions from GenAI products, with early sales trends showing promise [46][49] Question: MA division revenue and margins - Management provided insights on expected revenue growth and margin patterns for the MA division, indicating a steady ramp-up throughout the year [52][53]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (MARK ONE) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED December 31, 2023 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 13-3998945 (STATE OF INCORPORATION) (I.R.S. ...

Moody's (MCO) reported $1.48 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 14.7%. EPS of $2.19 for the same period compares to $1.60 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.49 billion, representing a surprise of -0.66%. The company delivered an EPS surprise of -6.41%, with the consensus EPS estimate being $2.34.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how ...

Core Insights - Moody's reported quarterly earnings of $2.19 per share, missing the Zacks Consensus Estimate of $2.34 per share, but showing an increase from $1.60 per share a year ago, resulting in an earnings surprise of -6.41% [1] - The company posted revenues of $1.48 billion for the quarter, which was below the Zacks Consensus Estimate by 0.66%, but up from $1.29 billion year-over-year [1] Earnings Performance - Moody's has surpassed consensus EPS estimates three times over the last four quarters, while it missed the estimate in the latest quarter [1] - The company had a previous quarter earnings expectation of $2.35 per share but reported $2.43, delivering a surprise of 3.40% [1] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.87 on revenues of $1.62 billion, and for the current fiscal year, it is $11.27 on revenues of $6.53 billion [4] - The estimate revisions trend for Moody's is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [4] Industry Context - The Financial - Miscellaneous Services industry, to which Moody's belongs, is currently in the bottom 38% of over 250 Zacks industries, which may impact stock performance [5] - Another company in the same industry, PRA Group, is expected to report a quarterly loss of $0.35 per share, reflecting a year-over-year change of -185.4% [5][6]

NEW YORK--(BUSINESS WIRE)--Moody's Corporation (NYSE: MCO) today announced results for the fourth quarter and full year 2023, and provided its outlook for full year 2024. The Fourth Quarter and Full Year 2023 Earnings Release and other earnings materials can be found on the Moody’s IR website at ir.moodys.com. In addition, the Earnings Release will be furnished with the Securities and Exchange Commission (SEC) on a Form 8-K and will be available on the SEC website at www.sec.gov. “ 2023 was a year of trem ...

Moody's (MCO) is scheduled to announce fourth-quarter and full-year 2023 results on Feb 13, before the opening bell. The company’s Corporate Finance line, the largest revenue contributor at the Moody's Investors Service (“MIS”) division, is likely to have witnessed solid revenue performance in the to-be-reported quarter.Global issuance activity was robust in the fourth quarter of 2023 compared with the prior-year quarter. The issuance volume also got boosted by the tightening of corporate spreads in the lat ...