Moody’s Reports Significant Increase in Fourth-Quarter Net Income and Projects Further Growth in 2024.

Moody’s Reports Increase in 4th Quarter Net Income and Anticipates Earnings Growth in 2024 as Markets and Economy Stabilize

Moody’s Corp. reported a significant increase in fourth-quarter net income and is projecting further growth in 2024. The company’s bond-rating and financial-research arms are expected to benefit from a rebound in credit markets and stabilizing economic conditions.

In the fourth quarter, Moody’s recorded earnings of $340 million, compared to $246 million from a year earlier. Revenue at its research unit rose by 11%, while revenue at the credit ratings unit increased by 19%. The growth was attributed to a rebound in Treasury markets and a brighter economic outlook. Bank-loan rating demand was the strongest since early 2022, indicating that businesses are optimistic about their future growth prospects.

Looking ahead, Moody’s projected earnings for 2024 in a range between $9.45 a share and $10.20 a share, or between $10.25 a share and $11a share on an adjusted basis. In 2023, the company logged earnings of $8.73 a share. The earnings projection is based on an assumption of U.S. GDP expanding by 1%-to-2% and a decline in the U.S inflation rate to 2% by year-end

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