Moody’s shares rise nearly 3% as fourth quarter earnings top expectations

Moody's Corporation shares rose nearly 3% in New York trading on February 15, 2024, after the credit rating agency announced fourth quarter earnings that exceeded analyst expectations, driven by strong performance in its risk solutions and analytical services divisions. The financial services company reported adjusted earnings per share of $2.18 for the fourth quarter, surpassing the consensus estimate of $2.05 according to Refinitiv data. Revenue for the period reached $1.4 billion, marking a 5% increase year-over-year and reflecting growing demand for credit assessments and financial analytics in an increasingly complex global economic landscape. Moody's CEO Robert Faughnan expressed confidence in the company's strategic direction during an earnings call, highlighting the successful integration of recent acquisitions and continued strength in its core rating business. The company also provided optimistic guidance for the full year 2024, projecting mid-single digit revenue growth as it benefits from ongoing market volatility and increased regulatory requirements that drive demand for independent credit opinions.