Moody’s Set to Report Strong Q3 2024 Results on Oct. 22
Moody’s MCO will reveal its third-quarter 2024 financial results on October 22, just before the market opens. The company’s Corporate Finance division, which is the primary source of revenue for Moody’s Investors Service (“MIS”), is expected to show significant revenue growth.
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The global issuance activity in Q3 was robust, thanks to tighter corporate debt spreads and a favorable economic climate.
Each sub-category of non-financial corporate bonds—investment grade, high yield, and leveraged loans—saw year-over-year improvements. The Zacks Consensus Estimate for revenues from the Corporate Finance sector stands at $448.3 million, reflecting a 29.6% increase compared to the same quarter last year.
For the Financial Institutions business line, the consensus estimate is $179.7 million, which indicates a remarkable 42.6% jump. Meanwhile, the Public, Project, and Infrastructure Finance segment is estimated to bring in $144.2 million, suggesting a growth of 25.4%.
Issuance volumes for commercial mortgage-backed securities, collateralized debt obligations, and asset-backed securities remained strong, positively influencing Structured Finance revenues. The estimate for these revenues is $121 million, indicating an 18.6% rise.
The overall expected revenue for the MIS division for this quarter is $934.3 million, which suggests a 34.2% increase from the previous year.
Key Insights and Estimates for Moody’s Q3 Performance
Moody’s Analytics (“MA”) Division: With an uptick in demand for analytics, revenues from all units within MA are expected to see growth in Q3. The company’s focus on enhancing profitability through strategic acquisitions is likely to provide additional support. Consequently, the estimated revenues for this division should increase as well.
The consensus revenue estimate for the MA division is $844.6 million, reflecting an 8.8% rise compared to the last year’s quarter.
Expenses: Owing to Moody’s growth initiatives, expenses related to acquisitions and restructuring are expected to go up in this upcoming quarter.
Forecasts for Moody’s Earnings
According to our model, Moody’s shows a strong likelihood of exceeding the Zacks Consensus Estimate for earnings. This is supported by the presence of a positive Earnings ESP and a Zacks Rank of #3 (Hold) or higher.
Earnings ESP: Moody’s current Earnings ESP stands at +1.67%.
Zacks Rank: The company currently holds a Zacks Rank of #2 (Buy).
Q3 Earnings and Revenue Projections for MCO
The Zacks Consensus Estimate for earnings is $2.89, which has been adjusted upward by 5.1% in the past week. This figure indicates an 18.9% increase from last year’s earnings.
Moody’s Corporation Price and EPS Surprise
Moody’s Corporation price-eps-surprise | Moody’s Corporation Quote
The sales projection of $1.73 billion implies a growth of 17.6%.
Other Noteworthy Stocks in the Finance Sector
If you’re exploring opportunities, consider these tickers, which indicate potential for an earnings beat:
East West Bancorp EWBC has an Earnings ESP of +0.10% and currently carries a Zacks Rank of #3. It’s expected to report its Q3 2024 results on October 22. The Zacks Consensus Estimate for EWBC’s earnings remains stable at $2.05.
SEI Investments SEIC is set to release its Q3 2024 earnings on October 23. Holding a Zacks Rank #2, it also has an Earnings ESP of +0.62%. For this company, the quarterly earnings estimate stands unchanged at $1.07 over the past week.
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Moody’s Corporation (MCO): Free Stock Analysis Report
SEI Investments Company (SEIC): Free Stock Analysis Report
East West Bancorp, Inc. (EWBC): Free Stock Analysis Report
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The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Nasdaq, Inc.
