Strong Global Bond Issuances to Aid Moody's (MCO) Q1 Earnings

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].