Strong Global Bond Issuances to Aid Moody's (MCO) Q2 Earnings

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]