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Dec 31, 2019

Moody's Q4 2019 Earnings Report

Moody's Corporation reported a strong Q4 2019 with revenue up 16% and diluted EPS up 46%.

Key Takeaways

Moody's Corporation reported Q4 2019 revenue of $1.2 billion, a 16% increase year-over-year. Diluted EPS was $1.88, up 46% from Q4 2018, and adjusted diluted EPS was $2.00, a 23% increase. The company's full year revenue was $4.8 billion, a 9% increase from FY 2018.

Q4 2019 revenue increased by 16% to $1.2 billion.

Q4 2019 diluted EPS grew by 46% to $1.88.

Moody's Investors Service (MIS) revenue increased by 21% to $720 million.

Moody's Analytics (MA) revenue increased by 10% to $513 million.

Total Revenue
$1.23B
Previous year: $1.06B
+16.3%
EPS
$2
Previous year: $1.63
+22.7%
Operating Margin
40.9%
Adjusted Operating Margin
45.3%
Gross Profit
$878M
Previous year: $756M
+16.1%
Cash and Equivalents
$1.83B
Previous year: $1.69B
+8.7%
Free Cash Flow
$471M
Previous year: $349M
+35.1%
Total Assets
$10.3B
Previous year: $9.53B
+7.8%

Moody's

Moody's

Moody's Revenue by Segment

Forward Guidance

Moody's anticipates mid-single-digit percent range revenue increase. Operating expenses are expected to increase in the low-single-digit percent range. Diluted EPS is projected to be $8.60 to $8.80 and adjusted diluted EPS $9.10 to $9.30.

Positive Outlook

  • Revenue increase in the mid-single-digit percent range
  • Operating expenses increase in the low-single-digit percent range
  • Operating margin approximately 44%
  • Adjusted operating margin 48% - 49%
  • Diluted EPS $8.60 to $8.80

Challenges Ahead

  • Assumptions about geopolitical conditions
  • Macroeconomic and capital market factors
  • Interest rates
  • Foreign currency exchange rates
  • Corporate profitability and business investment spending

Revenue & Expenses

Visualization of income flow from segment revenue to net income