NYSE$MCO

Moody's Corp. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Moody's performance was affected by macroeconomic conditions and market volatility, while Moody's Analytics demonstrated strong growth driven by strategic shift towards subscription-based products.

Moody's Corporation reported a decrease in revenue and EPS for the second quarter of 2022, driven by a decline in Moody's Investors Service revenue due to volatile market conditions. However, Moody's Analytics revenue grew due to demand for Know Your Customer solutions and credit research.

  • Moody's Corporation's revenue decreased by 11% to $1.4 billion.
  • Moody’s Investors Service revenue decreased by 28% to $706 million.
  • Moody’s Analytics revenue increased by 18% to $675 million.
  • MCO Diluted EPS decreased 42% to $1.77.

Headline financials

Total Revenue

$1.38B

Previous: $1.55B-11.1%
EPS (adj)

$2.22

Previous: $3.22-31.1%
Capital Expenditures

-$133M

Previous: -$44M-202.3%
Free Cash Flow

$194M

Previous: $533M-63.6%
Net Income

$327M

Previous: $577M-43.3%
Operating Income

$508M

Previous: $801M-36.6%
Gross Profit

$988M

Previous: $1.19B-16.8%
Cash & Equivalents

$1.62B

Previous: $2.81B-42.4%
Total Assets

$14.3B

Previous: $12.6B+14.0%
Stock-Based Comp

$38M

Previous: $41M-7.3%

Revenue & EPS history

Moody's · Revenue · Quarterly

$1.38B

Q2 2022-11.1%vs Q2 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Moody's · $1.47B total across 7 segments · Q3 2023

  • Decision Solutions
    $354M+8.9%
  • Corporate Finance
    $346M+24.9%
  • Research & Insights
    $222M+20.7%
  • Data & Information
    $200M+13.6%
  • Financial Institutions
    $126M+15.6%
  • Public, Project, and Infrastructure Finance
    $115M+25.0%
  • Structured Finance
    $102M+1.0%

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.

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 Q2 2022

Historical avgQ2 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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