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Dec 31, 2022
Moody's Q4 2022 Earnings Report
Moody's Corporation reported a decrease in revenue and EPS for Q4 2022, with Moody's Investors Service revenue declining significantly, while Moody's Analytics revenue increased. The company provided its outlook for full year 2023.
Key Takeaways
Moody's Corporation's Q4 2022 results showed a mixed performance, with overall revenue declining by 16% to $1.3 billion and diluted EPS decreasing by 41% to $1.34. Moody's Investors Service (MIS) experienced a significant revenue drop of 34%, while Moody's Analytics (MA) saw a 7% increase in revenue. The company projects revenue growth in the mid-to-high-single-digit percent range for 2023 and forecasts adjusted diluted EPS in the range of $9.00 to $9.50.
Moody's Corporation's Q4 2022 revenue decreased by 16% to $1.3 billion, and FY2022 revenue decreased by 12% to $5.5 billion.
Moody's Investors Service (MIS) revenue declined by 34% in Q4 2022, while Moody's Analytics (MA) revenue increased by 7%.
MCO Diluted EPS decreased by 41% to $1.34, and adjusted diluted EPS decreased by 31% to $1.60.
Moody's projects revenue to grow in the mid-to-high-single-digit percent range and forecasts adjusted diluted EPS in the range of $9.00 to $9.50 for 2023.
Revenue by Segment
Forward Guidance
Moody's provided its outlook for full year 2023, with revenue expected to increase in the mid-to-high-single-digit percent range and adjusted diluted EPS projected to be between $9.00 and $9.50.
Positive Outlook
- Revenue increase in the mid-to-high-single-digit percent range.
- Operating expenses increase in the low-single-digit percent range.
- Adjusted Operating Margin between 44% and 45%.
- Operating cash flow between $1.7 to $1.9 billion.
- Free Cash Flow between $1.4 to $1.6 billion.
Challenges Ahead
- Interest expense, net: $290 to $310 million
- Effective tax rate: 20% to 22%
- Share repurchases: Approximately $250 million (subject to available cash, market conditions, M&A opportunities and other ongoing capital allocation decisions)
- MIS global revenue increase in the low-to-mid-single-digit percent range
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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