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Dec 31, 2021
Moody's Q4 2021 Earnings Report
Moody's reported record revenue driven by growth in both MIS and MA, strategically invested in business, and introduced new medium-term guidance.
Key Takeaways
Moody's Corporation reported a strong Q4 2021 with revenue reaching $1.5 billion, a 19% increase year-over-year, and diluted EPS of $2.28, up 37%. The company strategically invested in its business and introduced new medium-term guidance, expecting revenue to grow by at least 10% on an average annualized basis and adjusted operating margin to be in the low-50s percent range.
Moody's Corporation reported Q4 2021 revenue of $1.5 billion, up 19% from Q4 2020.
Q4 2021 diluted EPS was $2.28, up 37% from Q4 2020, and adjusted diluted EPS was $2.33, up 22%.
Moody's Investors Service (MIS) revenue increased by 19% to $871 million.
Moody's Analytics (MA) revenue increased by 20% to $668 million, with recurring revenue growing 22%.
Revenue by Segment
Forward Guidance
Moody's provided its outlook for full year 2022. They expect revenue to increase in the high-single-digit percent range and adjusted diluted EPS to be in the range of $12.40 to $12.90.
Positive Outlook
- U.S. and Euro area GDPs to each expand by approximately 3.5% - 4.5%.
- Global benchmark rates to increase from historic lows.
- U.S. high yield interest rate spreads to widen, moving slightly above the historical average of approximately 500 bps.
- Inflation rates to remain above central bank targets in many countries.
- U.S. unemployment to fall to approximately 3.5%.
Challenges Ahead
- MIS's full year 2022 global rated issuance will decrease in the low-single-digit percent range.
- Moody’s outlook assumes that the Company continues to not experience any material negative impact on its ability to conduct its operations as a result of COVID-19.
- The 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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