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Sep 30, 2021
Moody's Q3 2021 Earnings Report
Moody's reported impressive double-digit revenue growth driven by investments in capabilities and product development.
Key Takeaways
Moody's Corporation reported Q3 2021 revenue of $1.5 billion, a 13% increase year-over-year. Diluted EPS was $2.53, up 2%, while adjusted diluted EPS was $2.69, flat compared to the prior-year period. The company raised and narrowed its full year 2021 diluted EPS and adjusted diluted EPS guidance ranges.
Moody’s delivered impressive double-digit revenue growth.
Moody's invested significantly in its capabilities and product development.
Full year 2021 revenue is projected to increase in the low-teens percent range.
The company raised and narrowed full year adjusted diluted EPS guidance range to $12.15 to $12.35.
Moody's
Moody's
Moody's Revenue by Segment
Moody's Revenue by Geographic Location
Revenue by Segment
Decision Solutions Revenue
CapyFin.comResearch & Insights Revenue
CapyFin.comCorporate Finance Revenue
CapyFin.comStructured Finance Revenue
CapyFin.comFinancial Institutions Revenue
CapyFin.comPublic & Infrastructure Revenue
CapyFin.comMIS Other Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comNon-U.S. Revenue
CapyFin.com Forward Guidance
Moody's updated outlook for 2021 reflects assumptions about the impact of COVID-19, government and business responses, interest rates, inflation, foreign currency exchange rates, and capital markets' liquidity.
Positive Outlook
- Full year 2021 U.S. and Euro area GDPs to expand by approximately 5.5% - 6.5% and 4.5% - 5.5%, respectively
- U.S. high yield interest rate spreads to slightly widen, but remain below the historical average of approximately 500 bps
- U.S. unemployment to remain below 5%
- Global high yield default rate to fall below 2% by the end of 2021
- MIS's full year 2021 global rated issuance will increase in the high-single-digit percent range
Challenges Ahead
- The duration and severity of the COVID-19 crisis are unknown
- 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 2021 results could differ materially from Moody’s current outlook.
- Guidance assumes foreign currency translation
- Share repurchases are subject to available cash, market conditions, M&A opportunities and other ongoing capital allocation decisions
Revenue & Expenses
Visualization of income flow from segment revenue to net income