NYSE$MCO
Moody's Corp. · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
Moody's reported impressive double-digit revenue growth, driven by a rebound in issuance and increasing demand for research, data, and solutions. The company is investing in transformative technologies to enhance capabilities and reaffirmed its full-year adjusted diluted EPS guidance.
Moody's Corporation reported strong third-quarter results with a 15% increase in revenue to $1.5 billion. Diluted EPS increased by 28% to $2.11, and adjusted diluted EPS increased by 31% to $2.43. The company reaffirmed its full-year adjusted diluted EPS guidance of $9.75 to $10.25.
- Revenue increased 15% from the prior-year period.
- Moody’s Analytics (MA) revenue grew 13% from the prior-year period, and included double-digit growth across all lines of business.
- Moody’s Investors Service (MIS) revenue grew 18%, relative to issuance growth of 12%, and benefitted from a favorable mix of leveraged finance and infrequent banking issuer activity.
- Diluted and adjusted diluted EPS increased from the prior-year period on higher operating income, reflecting MA and MIS’s revenue growth and a disciplined approach to expense management.
Headline financials
Revenue & EPS history
Moody's · Revenue · Quarterly
$1.47B
Revenue by segment
Moody's · $1.47B total across 7 segments · Q3 2023
- Decision Solutions$354M+8.9%24.2%
- Corporate Finance$346M+24.9%23.6%
- Research & Insights$222M+20.7%15.2%
- Data & Information$200M+13.6%13.7%
- Financial Institutions$126M+15.6%8.6%
- Public, Project, and Infrastructure Finance$115M+25.0%7.8%
- Structured Finance$102M+1.0%7.0%
Forward guidance
Moody's updated outlook for full year 2023 reflects assumptions about numerous factors that could affect its business and is based on currently available information reviewed by management.
Tailwinds
- Revenue: Increase in the high-single-digit percent range
- Operating expenses: Increase in the mid-single-digit percent range
- Adjusted Operating Margin: 44% to 45%
- Effective tax rate: 16% to 18%
- Adjusted Diluted EPS: $9.75 to $10.25
Headwinds
- Interest expense, net: $250 to $260 million
- U.S. high yield spreads: To fluctuate around 400 - 450 bps, with periodic volatility
- Global high yield default rate: Rise to 4.5% - 5.0% by year-end
- U.S. unemployment rate: Rise toward 3.8% by year-end
- Euro area inflation rate: Large economies decline to between 3% and 4% by year-end
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 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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