Moody's Q4 Earnings Beat Estimates, Shares Gain on Solid 2025 Guidance

Core Insights - Moody's reported fourth-quarter 2024 adjusted earnings of $2.62 per share, exceeding the Zacks Consensus Estimate of $2.60, with a 20% increase from the previous year [1][3] - The company's revenues for the quarter were $1.67 billion, a 13% year-over-year increase, although it fell short of the consensus estimate of $1.70 billion [4] - Moody's expects adjusted earnings for 2025 to be in the range of $14.00-$14.50 per share, with projected revenue growth in the high-single-digit percent range [9] Financial Performance - Net income attributable to Moody's for the fourth quarter was $395 million or $2.17 per share, up from $340 million or $1.85 per share in the prior-year quarter [3] - For the full year 2024, adjusted earnings were $12.47 per share, beating the consensus estimate of $12.39, and grew 26% year over year [3] - Total revenues for 2024 reached $7.09 billion, a 20% increase, but missed the consensus estimate of $7.11 billion [4] Segment Performance - Moody's Investors Service revenues increased 18% year over year to $809 million, driven by strong Corporate Finance and Structured Finance performance [5] - Moody's Analytics revenues grew 8% to $863 million, supported by robust demand for proprietary data and analytical insights [5] Balance Sheet and Liquidity - As of December 31, 2024, Moody's had total cash and short-term investments of $2.97 billion, up from $2.19 billion a year earlier [6] - The company reported $6.73 billion in outstanding debt and $1.25 billion in additional borrowing capacity under its revolving credit facility [6] Share Repurchase Program - During the quarter, Moody's repurchased 1 million shares at an average price of $477.15, with approximately $1.6 billion of share repurchase authorization remaining available as of December 31, 2024 [7] 2025 Guidance - Moody's anticipates operating expenses to rise in the low-to-mid-single-digit percent range and expects $80 million to $100 million in restructuring charges related to its Strategic and Operational Efficiency Restructuring Program [10]