Core Insights - Moody's is expected to report quarterly earnings of $3.06 per share, reflecting a 2.3% increase year-over-year, with revenues projected at $1.73 billion, a 17.9% increase compared to the previous year [1] - The consensus EPS estimate has been adjusted downward by 0.3% over the past 30 days, indicating a reassessment by analysts [1] Revenue Estimates - Analysts project 'Revenue- Total external customers- Moody's Analytics' to reach $806.74 million, a 9.5% increase from the prior-year quarter [2] - 'Revenue- Total external customers- Moody's investor services' is expected to be $874.35 million, indicating a year-over-year change of 19.3% [2] - 'Revenue- Moody's investor services- Relationship' is estimated at $312.42 million, suggesting a 3.5% year-over-year increase [2] Additional Revenue Projections - 'Revenue- Moody's investor services- Transaction' is likely to reach $605.12 million, reflecting a significant 40.4% increase from the year-ago quarter [3] - The overall 'Revenue- Moody's investor services' is expected to be $913.86 million, indicating a 17.5% year-over-year change [3] - 'Revenue- Moody's Analytics' is projected at $809.92 million, a 9.5% increase from the prior-year quarter [3] - 'Revenue- Moody's investor services- Public, project and infrastructure finance' is estimated at $138.92 million, a 7.7% increase year-over-year [3] - 'Revenue- Moody's investor services- Financial institutions' is forecasted to reach $151.75 million, indicating a 6.9% increase from the previous year [3] Further Revenue Insights - 'Revenue- Moody's investor services- Structured finance' is expected to be $121.94 million, reflecting a 23.2% year-over-year change [4] - 'Revenue- Moody's investor services- Corporate finance' is projected at $454.13 million, indicating a 27.6% increase from the prior-year quarter [4] - The estimate for 'Revenue- Moody's investor services- MIS Other' stands at $7.28 million, suggesting a 4% year-over-year change [4] - 'Adjusted Operating income / (loss)- Moody's Analytics' is estimated at $240.10 million, compared to $214 million from the previous year [4] Stock Performance - Over the past month, shares of Moody's have returned -4.3%, compared to the Zacks S&P 500 composite's -2% [5] - Moody's currently holds a Zacks Rank 3 (Hold), indicating that its performance may align with the overall market in the near future [5]

Core Viewpoint - Moody's is expected to report strong revenue growth in Q1 2024, driven by robust issuance activity across various sectors, despite rising yields and uncertain interest rate cuts by the Federal Reserve [1][2]. Group 1: Revenue Performance - The Corporate Finance line is projected to generate revenues of $454.1 million, reflecting a 27.6% increase year-over-year [2]. - The Financial Institutions business line is estimated to achieve revenues of $151.7 million, indicating a 6.9% growth [2]. - The Public, Project and Infrastructure Finance business is expected to see revenues of $138.9 million, suggesting a 7.7% increase [2]. - Structured Finance revenues are anticipated to reach $121.9 million, representing a 23.2% growth [2]. - Overall revenues for the Moody's Investors Service division are estimated at $913.9 million, implying a 17.5% rise [2]. Group 2: Moody's Analytics Division - The Moody's Analytics division is expected to report revenues of $809.9 million, indicating a 9.4% increase from the prior year, supported by rising demand for analytics and inorganic growth strategies [3]. Group 3: Expenses and Earnings Expectations - Expenses are likely to increase due to strategic acquisition charges, restructuring costs, and inflationary pressures [3]. - The consensus estimate for Moody's Q1 earnings is $3.06, revised up by 8.9% over the past 30 days, reflecting a 2.3% rise from the previous year [4]. - Sales are projected to reach $1.73 billion, suggesting a 17.9% year-over-year growth [4].

Moody's (MCO) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move l ...

【纽约社区银行获穆迪上调信用评级 此前姆努钦牵头财团注资】财联社3月16日电，穆迪投资者服务公司上调纽约社区银行的信用评级，此前这家陷入困境的银行获得了姆努钦牵头财团的注资。不过，该行评级仍属垃圾级。穆迪将该行的长期发行人评级从B3上调至B2，仍比投资级低五级。这家信用评级公司在其上调理由中还提到，该行年报包含无保留审计意见，这意味着审计师认为该公司的财务报表实现公允反映。穆迪2月份曾下调该行评级至垃圾级，本月早些时候又进一步下调。 ...

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]

Financial Performance - Moody's reported a significant increase in recurring revenue, driven by subscription-based services, which accounted for a substantial portion of total revenue[10]. - The company achieved a net income of $1.2 billion for the fiscal year, reflecting a year-over-year increase of 15%[12]. - Moody's total revenue for the year ended December 31, 2023, was $5,916 million, reflecting an 8% increase compared to $5,468 million in 2022[148]. - Operating income rose by 13% to $2,137 million, while adjusted operating income increased by 12% to $2,597 million[149]. - Diluted EPS increased by 17% to $8.73, and adjusted diluted EPS rose by 16% to $9.90, primarily due to growth in operating income[148]. - Total non-operating expenses increased by 64% to $(202) million, largely due to higher realized losses on interest rate swaps and increased foreign exchange losses[149]. - The effective tax rate (ETR) decreased by 500 basis points to 16.9%, reflecting tax benefits recognized from the resolution of uncertain tax positions[158]. Revenue Segmentation - Moody's Analytics (MA) segment revenue grew by 10% year-over-year, reaching $1.5 billion, supported by strong demand for data and analytics solutions[15]. - MA external revenue increased by 10% to $3,056 million, driven by sustained demand for KYC solutions and growth in insurance products and SaaS-based banking offerings[148]. - Moody's Investors Service (MIS) generated $2.3 billion in revenue, with a 5% increase attributed to higher demand for credit ratings and research services[20]. - MIS external revenue grew by 6% to $2,860 million, supported by increased investment-grade and speculative-grade corporate debt issuance[148]. - Corporate Finance revenue grew by 11% to $1,404 million, driven by higher leveraged finance and investment-grade rated issuance volumes[185]. - Structured Finance revenue decreased by 12% to $405 million, impacted by lower securitization activity across most asset classes[192]. Market Expansion and Strategy - The company plans to expand its market presence through strategic acquisitions and partnerships, focusing on enhancing its technology capabilities[27]. - Moody's is focused on expanding customer relationships and addressing new use cases to drive growth in its MA segment[53]. - Moody's expanded its domestic ratings footprint into new markets, including investments in affiliates in Costa Rica and Vietnam[66]. - The company has made acquisitions, including RMS, to enhance its climate data and analytics capabilities[45]. Sustainability and Corporate Responsibility - The company has committed to sustainability initiatives, receiving recognition as a CDP Supplier Engagement Leader on Climate Action for the third consecutive year[27]. - Moody's aims to achieve net-zero emissions across its operations and value chain by 2040, with a decarbonization plan that includes procuring 100% renewable electricity[44]. - Moody's is integrating sustainability-related performance metrics into the compensation structure for senior executives, aligning with its long-term strategic goals[27]. - The company is committed to equitable pay and inclusive benefits, with a focus on transparency in compensation[35]. Workforce and Employee Engagement - As of December 31, 2023, Moody's total employee count increased by 10% to 7,853 from 7,122 in 2022[31]. - The U.S. workforce saw a 3% increase, while the non-U.S. workforce grew by 6%[31]. - Employee engagement is monitored through periodic surveys, with a focus on improving work/life balance and development opportunities[42]. - Voluntary turnover rates decreased to 7% in 2023, reflecting a stronger labor market compared to 2022[43]. Regulatory Environment and Compliance - Moody's is subject to extensive regulation in the U.S. and EU, impacting its operations and profitability, with new regulations on ESG ratings expected to be adopted in the first half of 2024[67]. - The company is actively assessing the potential impact of new regulations on its operations and market demand for its products and services[67]. - Future regulations in the EU and U.K. could impact the demand for credit ratings, increase competition, and impose additional operational costs on Moody's[82]. - Moody's faces exposure to litigation and regulatory proceedings related to its ratings actions, which could result in significant legal costs and adverse judgments[83]. Competition and Market Risks - The company faces competition from various financial information and enterprise risk software providers, as well as other credit rating agencies[66]. - Moody's faces increased pricing pressure due to competition in credit rating and research markets, with a challenging business environment impacting customer demand[93]. - Competition from non-traditional credit rating agencies, which may impact its market share and revenue[92]. - The introduction of competing products and technologies may negatively impact Moody's market position and growth prospects[96]. Cybersecurity and Data Protection - Cybersecurity risks related to the protection of confidential information are a significant concern for Moody's operations[100]. - The Company faces significant cybersecurity risks, including unauthorized access and data breaches, which could adversely affect customer trust and business operations[101]. - The Company is subject to various data protection laws, including GDPR and CCPA, with non-compliance potentially resulting in penalties up to 4% of annual worldwide revenue[103]. - The Company's cybersecurity program is integrated into its enterprise risk management framework and is regularly tested against emerging threats[107]. Financial Assets and Goodwill - The company has $5,956 million in goodwill and $2,049 million in intangible assets, with 95% of these assets allocated to the MA business[98]. - Moody's evaluates its goodwill for impairment annually, with the last evaluation conducted on July 31[126]. - The Company performed qualitative assessments for all four reporting units as of July 31, 2023, concluding that it was not more likely than not that the fair value of any reporting unit was less than its carrying amount[127].