NYSE$MCO

Moody's Corp. · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Moody's Corporation reported a decrease in revenue and EPS for Q4 2022, with Moody's Investors Service revenue declining significantly, while Moody's Analytics revenue increased. The company provided its outlook for full year 2023.

Moody's Corporation's Q4 2022 results showed a mixed performance, with overall revenue declining by 16% to $1.3 billion and diluted EPS decreasing by 41% to $1.34. Moody's Investors Service (MIS) experienced a significant revenue drop of 34%, while Moody's Analytics (MA) saw a 7% increase in revenue. The company projects revenue growth in the mid-to-high-single-digit percent range for 2023 and forecasts adjusted diluted EPS in the range of $9.00 to $9.50.

  • Moody's Corporation's Q4 2022 revenue decreased by 16% to $1.3 billion, and FY2022 revenue decreased by 12% to $5.5 billion.
  • Moody's Investors Service (MIS) revenue declined by 34% in Q4 2022, while Moody's Analytics (MA) revenue increased by 7%.
  • MCO Diluted EPS decreased by 41% to $1.34, and adjusted diluted EPS decreased by 31% to $1.60.
  • Moody's projects revenue to grow in the mid-to-high-single-digit percent range and forecasts adjusted diluted EPS in the range of $9.00 to $9.50 for 2023.

Headline financials

Total Revenue

$1.29B

Previous: $1.54B-16.2%
EPS (adj)

$1.60

Previous: $2.33-31.3%
Capital Expenditures

$79M

Previous: $62M+27.4%
Free Cash Flow

$298M

Previous: $237M+25.7%
Net Income

$246M

Previous: $427M-42.4%
Operating Income

$306M

Previous: $514M-40.5%
Gross Profit

$880M

Previous: $1.05B-16.5%
Cash & Equivalents

$1.77B

Previous: $1.81B-2.3%
Total Assets

$14.3B

Previous: $14.7B-2.3%
Stock-Based Comp

$39M

Previous: $48M-18.8%

Revenue & EPS history

Moody's · Revenue · Quarterly

$1.29B

Q4 2022-16.2%vs Q4 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Moody's · $1.28B total across 7 segments · Q4 2022

  • Decision Solutions
    $353M+65.0%
  • Corporate Finance
    $253M-43.0%
  • Research & Insights
    $181M-60.1%
  • Data & Information
    $180M
  • Financial Institutions
    $123M-10.2%
  • Structured Finance
    $94M-41.6%
  • Public, Project, and Infrastructure Finance
    $94M-20.3%

Forward guidance

Moody's provided its outlook for full year 2023, with revenue expected to increase in the mid-to-high-single-digit percent range and adjusted diluted EPS projected to be between $9.00 and $9.50.

Tailwinds

  • Revenue increase in the mid-to-high-single-digit percent range.
  • Operating expenses increase in the low-single-digit percent range.
  • Adjusted Operating Margin between 44% and 45%.
  • Operating cash flow between $1.7 to $1.9 billion.
  • Free Cash Flow between $1.4 to $1.6 billion.

Headwinds

  • Interest expense, net: $290 to $310 million
  • Effective tax rate: 20% to 22%
  • Share repurchases: Approximately $250 million (subject to available cash, market conditions, M&A opportunities and other ongoing capital allocation decisions)
  • MIS global revenue increase in the low-to-mid-single-digit percent range
  • MA global revenue increase of approximately 10%

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 2022

Historical avgQ4 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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