Moody's Projects High Single-Digit Revenue Increase For 2025, Q4 Revenue Climbs 13%

Moody's Corporation (NYSE: MCO), a leading global integrated risk assessment firm, has announced its fourth quarter and full year 2024 results, providing an outlook for 2025 and updating its medium-term guidance. The company reported a strong finish to the year, with full year revenue growth of 20% and adjusted EPS growth of 28.06%. Moody's expects adjusted EPS of $14.00-$14.50 for 2025, with revenues projected to increase in the high-single-digit percent range.



Moody's delivered a strong fourth quarter, with quarterly adjusted earnings per share of $2.61, beating the Street view of $2.59. Quarterly revenue of $1.67 billion, up by 13% year-on-year, missed the Street view of $1.7 billion. Moody's Investors Service's (MIS) revenue increased 18% to $809 million from the prior year, while Moody's Analytics (MA) revenue grew 8% to $863 million. The company's adjusted operating margin was 43.8%, up 120 basis points from the prior-year period. MA's adjusted operating margin rose by 240 basis points to 33.8%, while MIS's adjusted operating margin of 51.3% compared to 51.9% a year ago.



Moody's outlook for 2025 reflects a stable outlook for the US states and cities & counties, with low single-digit revenue growth projected for both sectors. Revenue growth is expected to normalize as lingering impacts of pandemic-era volatility fade, with reserves remaining high but some drawdowns beginning due to needed capital investment. The biggest threats to credit in 2025 are potential changes in federal policies and possible impacts on economic prospects.

Moody's plans to maintain its competitive edge in the market by capitalizing on durable demand drivers for both its businesses, investing in its platform, data, and product innovation, and executing disciplined strategies. The company's strategic acquisitions and partnerships, such as the acquisition of Numerated Growth Technologies and CAPE Analytics, have contributed to its revenue growth and market leadership.

Moody's Corporation's stock price has surged over 41% in the last 12 months, topping analyst consensus estimates in the previous three quarters. The company's strong performance and growth prospects have led to price target raises from at least two Wall Street firms in 2025. Moody's stock is up 3.17% to $521.46 premarket at last check Thursday, following the release of its fourth quarter and full year 2024 results.

Moody's Corporation's strong performance and growth prospects make it an attractive investment option for those seeking exposure to the financial data and stock exchanges sector. The company's strategic initiatives, acquisitions, and partnerships, combined with its disciplined execution, position it well to capitalize on durable demand drivers and maintain its competitive edge in the market.