NYSE$MCO

Moody's Corp. · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Moody's Corporation reported resilient first quarter performance with impressive growth in both revenue and margins.

Moody's Corporation reported a strong first quarter with revenue up 13% to $1.3 billion and diluted EPS of $2.57, a 33% increase year-over-year. However, due to the anticipated economic implications of COVID-19, the company has reduced its full year 2020 diluted EPS and adjusted diluted EPS guidance ranges.

  • Q1 2020 revenue reached $1.3 billion, a 13% increase compared to Q1 2019.
  • Moody's Investors Service (MIS) revenue was $794 million, up 19% from the prior year.
  • Moody's Analytics (MA) revenue increased by 5% to $496 million.
  • Diluted EPS for Q1 2020 was $2.57, a 33% increase from Q1 2019, while adjusted diluted EPS was $2.73, up 32%.

Headline financials

Total Revenue

$1.29B

Previous: $1.14B+12.9%
EPS (adj)

$2.73

Previous: $2.07+31.9%
Operating Margin

45.9%

No prior period
Adjusted Operating Margin

50.3%

No prior period
Capital Expenditures

-$21M

Previous: -$20M-5.0%
Free Cash Flow

$467M

Previous: $353M+32.3%
Net Income

$488M

Previous: $373M+30.9%
Operating Income

$592M

Previous: $462M+28.2%
Gross Profit

$950M

Previous: $800M+18.7%
Cash & Equivalents

$2.14B

Previous: $1.2B+78.9%
Total Assets

$11.3B

Previous: $9.52B+18.8%
Stock-Based Comp

$37M

Previous: $36M+2.8%

Revenue & EPS history

Moody's · Revenue · Quarterly

$1.29B

Q1 2020+12.9%vs Q1 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Moody's · $1.28B total across 6 segments · Q1 2020

  • Corporate Finance
    $453M+27.6%
  • Research & Insights
    $358M
  • Decision Solutions
    $138M
  • Financial Institutions
    $125M+7.8%
  • Public, Project, and Infrastructure Finance
    $109M+17.2%
  • Structured Finance
    $96M-5.0%

Forward guidance

Moody's updated outlook for 2020 reflects numerous assumptions about many factors that could affect its business based on information reviewed by management through and as of today’s date, including observations and assumptions regarding the impact of COVID-19.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.1%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+1.0%

Avg return

30 days after

60%

44 / 73 earnings

Positive

+13.5%

Q2 2012

Best reaction

-8.9%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.8%+0.3%-2.3%
Q4 2025+6.6%+3.3%+2.8%
Q3 2025-2.6%+2.1%-1.1%
Q2 2025+0.0%-1.8%-1.7%
Q1 2025+4.0%+6.1%+14.1%
Q4 2024+4.4%+2.8%-11.6%
Q3 2024-3.7%-5.0%-1.9%
Q2 2024-3.7%-0.4%+6.6%
Q1 2024+2.1%+5.7%+6.5%
Q4 2023-8.6%-7.6%-4.4%
Q3 2023+1.5%+0.2%+18.6%
Q2 2023+0.7%-1.0%-7.2%
Q1 2023+0.8%+3.5%+2.3%
Q4 2022+2.9%+3.2%-7.6%
Q3 2022+4.9%+9.8%+21.6%
Q2 2022+1.0%+6.8%+5.3%
Q1 2022-2.2%-5.1%-10.8%
Q4 2021-3.2%-3.9%-11.3%
Q3 2021+2.9%-0.5%-2.2%
Q2 2021+0.6%-0.6%+0.7%
Q1 2021+1.1%+0.9%+2.7%
Q4 2020+0.6%+0.7%+4.7%
Q3 2020+0.4%+2.8%+5.9%
Q2 2020-3.5%-5.3%+1.0%
Q1 2020-5.2%-1.8%+4.9%
Q4 2019+0.7%+2.5%-21.4%
Q3 2019+0.1%-1.1%+2.8%
Q2 2019+6.8%+0.2%+6.6%
Q1 2019+2.4%+3.2%-1.9%
Q4 2018+2.6%+3.5%+7.9%
Q3 2018-8.9%-6.2%-3.1%
Q2 2018-8.0%-7.8%-6.7%
Q1 2018-1.5%-1.2%+5.7%
Q4 2017+4.7%+7.5%+11.8%
Q3 2017+0.7%+1.0%+5.4%
Q2 2017+5.0%+4.8%+2.6%
Q1 2017-2.3%-2.3%-0.5%
Q4 2016+2.4%+3.0%+1.6%
Q3 2016-4.9%-5.5%-7.0%
Q2 2016+1.3%+0.8%+0.3%
Q1 2016-3.1%
Q4 2015-8.9%
Q3 2015-5.0%
Q2 2015-1.3%
Q1 2015+0.8%
Q4 2014+5.0%
Q3 2014+2.3%
Q2 2014-1.6%
Q1 2014-1.6%
Q4 2013+3.3%
Q3 2013-3.7%
Q2 2013+3.6%
Q1 2013+4.9%
Q4 2012-3.2%
Q3 2012+5.3%
Q2 2012+13.5%
Q1 2012-1.0%
Q4 2011-0.6%
Q3 2011+2.0%
Q2 2011-2.2%
Q1 2011+0.3%
Q4 2010+0.4%
Q3 2010-0.2%
Q2 2010+1.4%
Q1 2009-7.5%
Q1 2010-2.8%
Q4 2007+2.2%
Q4 2009+2.2%
Q2 2009+2.2%
Q3 2008+2.0%
Q3 2009+2.0%
Q2 2008-4.9%
Q4 2008-4.9%

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