NYSE$MCO

Moody's Corp. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Moody's Corporation reported a decrease in revenue and EPS due to a decline in MIS revenue, offset by growth in MA revenue. The company updated its full-year 2022 outlook, reflecting ongoing macroeconomic uncertainties.

Moody's Corporation reported a 16% decrease in revenue to $1.3 billion and a 35% decrease in diluted EPS to $1.65 for Q3 2022. Moody's Investors Service (MIS) revenue declined by 36%, while Moody's Analytics (MA) revenue increased by 14%. The company updated its full-year 2022 adjusted diluted EPS guidance to $8.20 - $8.50.

  • Moody's Corporation's revenue decreased by 16% to $1.3 billion.
  • Moody's Investors Service (MIS) revenue declined by 36% to $590 million.
  • Moody's Analytics (MA) revenue increased by 14% to $685 million.
  • MCO Diluted EPS decreased 35% to $1.65.

Headline financials

Total Revenue

$1.28B

Previous: $1.53B-16.4%
EPS (adj)

$1.85

Previous: $2.69-31.2%
Capital Expenditures

-$204M

Previous: -$77M-164.9%
Free Cash Flow

$99M

Previous: $397M-75.1%
Net Income

$303M

Previous: $474M-36.1%
Operating Income

$413M

Previous: $676M-38.9%
Gross Profit

$882M

Previous: $1.13B-22.1%
Cash & Equivalents

$1.66B

Previous: $2.24B-26.0%
Total Assets

$13.9B

Previous: $14.4B-3.3%
Stock-Based Comp

$46M

Previous: $41M+12.2%

Revenue & EPS history

Moody's · Revenue · Quarterly

$1.28B

Q3 2022-16.4%vs Q3 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Moody's · $1.26B total across 7 segments · Q3 2022

  • Decision Solutions
    $325M+108.3%
  • Corporate Finance
    $277M-43.2%
  • Research & Insights
    $184M-58.7%
  • Data & Information
    $176M
  • Financial Institutions
    $109M-28.8%
  • Structured Finance
    $101M-29.4%
  • Public, Project, and Infrastructure Finance
    $92M-29.2%

Forward guidance

Moody's updated its outlook for full year 2022, reflecting assumptions about numerous factors that could affect its business and is based on currently available information reviewed by management. Revenue is expected to decline in the low-double-digit percent range. Adjusted Diluted EPS is expected to be $8.20 to $8.50.

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 Q3 2022

Historical avgQ3 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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