Moody's Q1 2021 Earnings Report
Key Takeaways
Moody's Corporation reported a strong first quarter in 2021, with revenue up 24% year-over-year to $1.6 billion and diluted EPS up 52% to $3.90. The company is increasing its revenue outlook to high-single-digit percent growth, and raising and narrowing its full year 2021 adjusted diluted EPS guidance range to $11.00 to $11.30.
Moody's Corporation's 1Q 2021 revenue reached $1.6 billion, a 24% increase from 1Q 2020.
Moody's Investors Service (MIS) revenue grew by 30% to $1.0 billion.
Moody’s Analytics (MA) revenue increased by 14% to $564 million.
Diluted EPS for 1Q 2021 was $3.90, a 52% increase from 1Q 2020, while adjusted diluted EPS was $4.06, up by 49%.
Moody's
Moody's
Moody's Revenue by Segment
Moody's Revenue by Geographic Location
Forward Guidance
Moody's updated outlook for 2021 reflects numerous assumptions about factors that could affect its business, including the impact of COVID-19, government and regulator responses, and effects on interest rates, foreign currency exchange rates, and capital markets activity.
Positive Outlook
- Full year 2021 U.S. and Euro area GDPs expanding approximately 6% - 7% and 3.5% - 4.5%, respectively
- U.S. high yield interest rate spreads below an average of approximately 450 bps
- U.S. unemployment to decline to approximately 5% - 6%
- The global high yield default rate falling to a range of 3% - 4% by the end of 2021
- Full year 2021 guidance includes share repurchases of approximately $1.5 billion
Challenges Ahead
- MIS's full year global rated issuance decreases in the low-single-digit percent range.
- The duration and severity of the COVID-19 crisis are unknown.
- The implications of COVID-19 or other situations or developments could affect these and many other factors that also could cause actual results to differ materially from Moody’s outlook.
- These assumptions are subject to uncertainty, and actual full year results for 2021 could differ materially from Moody’s current outlook.
- Moody’s guidance assumes foreign currency translation at end-of-quarter exchange rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income