NYSE$MCO

Moody's Corp. · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Moody's reported a revenue increase and a decrease in EPS for Q4 2020.

Moody's Corporation reported a 5% increase in revenue to $1.3 billion for Q4 2020. Diluted EPS decreased by 12% to $1.66, while adjusted diluted EPS decreased by 5% to $1.91. The company provided its outlook for full year 2021, projecting diluted EPS of $9.70 to $10.10 and adjusted diluted EPS of $10.30 to $10.70.

  • Q4 2020 revenue increased by 5% year-over-year to $1.3 billion.
  • Q4 2020 diluted EPS decreased by 12% year-over-year to $1.66.
  • Q4 2020 adjusted diluted EPS decreased by 5% year-over-year to $1.91.
  • The company projects 2021 revenue growth in the mid-single-digit percent range.

Headline financials

Total Revenue

$1.29B

Previous: $1.23B+4.6%
EPS (adj)

$1.91

Previous: $2.00-4.5%
Operating Margin

34.4%

Previous: 40.9%-15.9%
Adjusted Operating Margin

41.2%

Previous: 45.3%-9.1%
Capital Expenditures

$20M

Previous: $8.1M+146.9%
Free Cash Flow

$638M

Previous: $471M+35.3%
Net Income

$314M

Previous: $361M-13.0%
Operating Income

$444M

Previous: $504M-11.9%
Gross Profit

$881M

Previous: $878M+0.3%
Cash & Equivalents

$2.6B

Previous: $1.83B+41.8%
Total Assets

$12.4B

Previous: $10.3B+20.9%
Stock-Based Comp

$44M

Previous: $32.8M+34.1%

Revenue & EPS history

Moody's · Revenue · Quarterly

$1.29B

Q4 2020+4.6%vs Q4 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Moody's · $1.27B total across 6 segments · Q4 2020

  • Decision Solutions
    $404M+21.3%
  • Corporate Finance
    $371M+2.5%
  • Research & Insights
    $151M+1.3%
  • Financial Institutions
    $129M+12.2%
  • Public, Project, and Infrastructure Finance
    $121M-3.2%
  • Structured Finance
    $97M-11.0%

Forward guidance

Moody's provided its outlook for full year 2021. The company expects revenue to increase in the mid-single-digit percent range. Diluted EPS is expected to be $9.70 to $10.10 and adjusted diluted EPS is expected to be $10.30 to $10.70.

Tailwinds

  • Revenue increase in the mid-single-digit percent range
  • Operating expenses increase in the mid-single-digit percent range
  • Operating margin approximately 45%
  • Adjusted operating margin 49% - 50%
  • Diluted EPS $9.70 to $10.10

Headwinds

  • MIS global revenue approximately flat
  • Share repurchases approximately $1.5 billion (subject to available cash, market conditions and other ongoing capital allocation decisions)
  • MIS adjusted operating margin approximately 60%
  • MA global revenue increase in the low-double-digit percent range
  • MA adjusted operating margin approximately 30%

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 Q4 2020

Historical avgQ4 2020

+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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