NYSE$MCO
Moody's Corp. · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
Moody's Corporation reported a decrease in revenue but an increase in diluted EPS and adjusted diluted EPS for the first quarter of 2023. Moody's Analytics recorded its 61st consecutive quarter of growth. The company updated its outlook for the full year 2023.
Moody's Corporation reported a 3% decrease in revenue to $1.5 billion for Q1 2023, while Moody's Analytics revenue increased by 6% to $737 million and Moody's Investors Service revenue decreased by 11% to $733 million. Diluted EPS increased by 1% to $2.72, and adjusted diluted EPS increased by 3% to $2.99. The company updated its full year 2023 outlook, projecting diluted EPS of $8.45 to $8.95 and adjusted diluted EPS of $9.50 to $10.00.
- MCO revenue decreased by 3%, while MA revenue increased by 6% and MIS revenue decreased by 11% compared to the prior-year period.
- MA recorded its 61st consecutive quarter of growth, contributing approximately 50% to overall MCO revenue.
- MCO's diluted EPS increased by 1% to $2.72, and adjusted diluted EPS increased by 3% to $2.99.
- The effective tax rate was 1.0%, significantly lower than the 18.2% reported in the prior-year period, due to favorable resolutions of uncertain tax positions.
Headline financials
Revenue & EPS history
Moody's · Revenue · Quarterly
$1.47B
Revenue by segment
Moody's · $1.46B total across 7 segments · Q1 2023
- Corporate Finance$356M-14.6%24.3%
- Decision Solutions$354M+6.0%24.2%
- Research & Insights$195M+6.6%13.3%
- Data & Information$188M+5.6%12.9%
- Financial Institutions$142M+8.4%9.7%
- Public, Project, and Infrastructure Finance$129M+4.9%8.8%
- Structured Finance$99M-31.3%6.8%
Forward guidance
Moody's updated its outlook for full year 2023, reflecting assumptions about economic conditions, interest rates, inflation, foreign currency exchange rates, and capital markets' liquidity. The guidance includes specific macroeconomic assumptions for U.S. and Euro area GDP growth, global benchmark rates, U.S. high yield spreads, inflation rates, unemployment rate, and global high yield default rate.
Tailwinds
- Revenue: Increase in the mid-to-high-single-digit percent range
- MA global revenue: Increase of approximately 10%
- MIS global revenue: Increase in the low-to-mid-single-digit percent range
- Diluted EPS: $8.45 to $8.95
- Adjusted Diluted EPS: $9.50 to $10.00
Headwinds
- Operating expenses: Increase in the mid-single-digit percent range
- Interest expense, net: $275 to $295 million
- Effective tax rate: 15% to 17%
- MA Adjusted Operating Margin: Approximately 31%
- MIS Adjusted Operating Margin: Mid-50s percent range
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 2023
+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
| Quarter | Report date | Reaction (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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