Moody's Q2 2023 Earnings Report
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.
Moody's
Moody's
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