MCO - Moody's (MCO) Up 6.2% Since Last Earnings Report: Can It Continue? | Benzinga
A month has gone by since the last earnings report for Moody's (NYSE: MCO). Shares have added about 6.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Moody's due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Moody's Misses on Q4 Earnings & Revenues
Moody's reported fourth-quarter 2023 adjusted earnings of $2.19 per share, which lagged the Zacks Consensus Estimate of $2.34. The bottom line, however, jumped 37% from the year-ago quarter figure.
Improvement in global bond issuance volumes and steady demand for analytics supported Moody's results. The company's liquidity position was robust during the quarter. Also, stable operating expenses posed a tailwind.
After taking into consideration certain non-recurring items, net income attributable to Moody's was $340 million or $1.85 per share, up from $246 million or $1.34 per share in the prior-year quarter.
For 2023, adjusted earnings of $9.90 per share missed the Zacks Consensus Estimate of $10.06 but grew 16% year over year. Net income attributable to Moody's (GAAP) was $1.61 billion or $8.73 per share, up from $1.37 billion or $7.44 per share in the prior-year quarter.
Revenues Up, Costs Stable
Quarterly revenues were $1.48 billion, which missed the Zacks Consensus Estimate of $1.49 billion. However, the top line grew 15% year over year.
For 2023, total revenues grew 8% to $5.92 billion. The top line marginally lagged the consensus estimate of $5.93 billion.
Total expenses were $982 million, relatively stable year over year.
Adjusted operating income of $631 million was up 32%. Adjusted operating margin was 42.6%, up from 37% a year ago.
Solid Segment Performance
Moody's Investors Service revenues grew 19% year over ...
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