NYSE$MCO

Moody's Corp. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Moody's Corporation's Q1 2022 earnings were released, revealing a slight revenue decrease due to market uncertainty, while Moody's Analytics demonstrated robust growth.

Moody's Corporation reported a 5% decrease in revenue to $1.5 billion, with diluted EPS down 31% to $2.68. Moody's Analytics revenue increased by 23%, offsetting a decline in Moody's Investors Service revenue. The company has lowered its full year 2022 adjusted diluted EPS guidance range to $10.75 to $11.25.

  • Moody's Corporation's Q1 2022 revenue totaled $1.5 billion, a decrease of 5% year-over-year.
  • Moody's Investors Service revenue decreased by 20% to $827 million due to market uncertainty.
  • Moody's Analytics revenue increased by 23% to $695 million, marking the fifth consecutive quarter of double-digit growth.
  • Diluted EPS was reported at $2.68, down 31%, while adjusted diluted EPS was $2.89, down 29%.

Headline financials

Total Revenue

$1.52B

Previous: $1.6B-4.9%
EPS (adj)

$2.89

Previous: $4.06-28.8%
Operating Margin

43.1%

No prior period
Adjusted Operating Margin

48.2%

Previous: 57.1%-15.6%
Capital Expenditures

-$59M

Previous: -$14M-321.4%
Free Cash Flow

$439M

Previous: $722M-39.2%
Net Income

$498M

Previous: $736M-32.3%
Operating Income

$656M

Previous: $853M-23.1%
Gross Profit

$1.11B

Previous: $1.21B-8.5%
Cash & Equivalents

$1.75B

Previous: $2.77B-36.8%
Total Assets

$14.7B

Previous: $12.5B+17.9%
Stock-Based Comp

$46M

Previous: $45M+2.2%

Revenue & EPS history

Moody's · Revenue · Quarterly

$1.52B

Q1 2022-4.9%vs Q1 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Moody's · $1.51B total across 7 segments · Q1 2022

  • Corporate Finance
    $417M-31.1%
  • Decision Solutions
    $334M
  • Research & Insights
    $183M
  • Data & Information
    $178M
  • Structured Finance
    $144M+24.1%
  • Financial Institutions
    $131M-19.1%
  • Public, Project, and Infrastructure Finance
    $123M-14.0%

Forward guidance

Moody's updated outlook for full year 2022 reflects assumptions about numerous factors that could affect its business and is based on currently available information reviewed by management through and as of today’s date.

Tailwinds

  • 2022 U.S. and Euro area GDPs to expand by approximately 3.5% - 4.5% and 2.5% - 3.5%, respectively
  • Global benchmark rates to increase from historic lows
  • U.S. high yield interest rate spreads to widen, moving slightly above the historical average of approximately 500 bps
  • Inflation rates to remain elevated and above central bank targets in many countries
  • U.S. unemployment to remain low at approximately 3.5%

Headwinds

  • Full year 2022 global rated issuance will decrease in the mid-teens percent range
  • The crisis in Ukraine is subject to increased uncertainty, and actual full year 2022 results could differ materially from Moody’s current outlook.
  • Revenue is expected to be approximately flat
  • Operating expenses are expected to increase in the high-single-digit percent range
  • Operating margin is expected to be 41% to 42%

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 2022

Historical avgQ1 2022

+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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