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Jun 30, 2023
Moody's Q2 2023 Earnings Report
Moody's reported an increase in revenue and EPS, driven by strong performance in Moody's Analytics and Moody's Investors Service.
Key Takeaways
Moody's Corporation reported strong results for the second quarter of 2023, with revenue increasing by 8% and diluted EPS increasing by 16%. The company updated its full-year 2023 outlook to reflect stronger-than-expected investment-grade issuance.
Revenue increased by 8% driven by strong demand for data, analytics, and software solutions.
Moody's Analytics reported its 62nd consecutive quarter of growth, up 11% from the prior-year period.
Increased investor demand for high-quality credits led to higher-than-expected investment grade activity.
Diluted EPS increased 16% from the prior-year period.
Revenue by Segment
Forward Guidance
Moody's updated its outlook for full year 2023, reflecting assumptions about economic conditions, interest rates, inflation, and capital market activity.
Positive Outlook
- Revenue: Increase in the high-single-digit percent range
- Adjusted Operating Margin: 44% to 45%
- Interest expense, net: $260 to $280 million
- Diluted EPS: $8.70 to $9.20
- Adjusted Diluted EPS: $9.75 to $10.25
Challenges Ahead
- Operating expenses: Increase in the mid-single-digit percent range
- Effective tax rate: 16% to 18%
- Operating cash flow: $1.9 to $2.1 billion
- Free Cash Flow: $1.6 to $1.8 billion
- Share repurchases: Approximately $500 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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