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Jun 30, 2021
Moody's Q2 2021 Earnings Report
Moody's announced the acquisition of RMS and updated its full-year 2021 guidance.
Key Takeaways
Moody's Corporation announced the acquisition of RMS, a climate and natural disaster risk modeling and analytics firm, for approximately $2.0 billion. The acquisition is expected to close in late 3Q 2021. Moody's updated its full-year 2021 diluted EPS guidance to $10.90 to $11.20 and adjusted diluted EPS outlook to $11.55 to $11.85.
Moody's to acquire RMS for approximately $2.0 billion.
The acquisition will increase Moody’s insurance data and analytics business to nearly $500 million in revenue.
Moody's updated its full-year 2021 diluted EPS guidance to $10.90 to $11.20.
The Company’s 2021 adjusted diluted EPS outlook remains in the range of $11.55 to $11.85.
Forward Guidance
Moody's updated its full-year 2021 guidance, assuming the acquisition of RMS closes late in the third quarter of 2021.
Positive Outlook
- Revenue increase in the low-double-digit percent range
- Operating margin of 45% - 46%
- Adjusted Operating Margin approximately 50%
- Diluted EPS of $10.90 to $11.20
- Adjusted Diluted EPS of $11.55 to $11.85
Challenges Ahead
- Operating expenses approximately 10% increase in the mid-single-digit percent range
- Interest expense, net $160 - $180 million
- Effective tax rate 20% - 22%
- Operating cash flow $2.3 to $2.4 billion
- Free Cash Flow $2.2 to $2.3 billion
Historical Earnings Impact
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Avg. Return Before/After Earnings
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