Moody's Q4 2022 Earnings Report
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.
Moody's
Moody's
Moody's 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
- MA global revenue increase of approximately 10%
Revenue & Expenses
Visualization of income flow from segment revenue to net income