Moody’s Corp’s (MCO) Q1 revenue of US$1.5 bn falls behind estimates

May 02, 2022 01:44 PM PDT | By Team Kalkine Media

Moody’s Corp’s (MCO) Q1 revenue of US$1.5 bn falls behind estimates — Image source: © Id1974 | Megapixl.com

Moody’s risk assessment relevant in today’s market: CEO

Rob Fauber, President and CEO of Moody’s, said the company’s reliable ‘insights and breadth of integrated risk assessment solutions are relevant to market volatility and uncertain times.’ Fauber said the first-quarter revenue was driven by scaling up its KYC solutions and credit research.

Moody's corporate finance revenue was US$417 million, slackened by 31%, mostly because of a decline in leveraged finance issuance. Financial institutions' revenue was also down by 19% to US$131 million. It was precipitated by a decrease in opportunistic issuance from irregular US banks and insurers on widening spreads and raised benchmark rates.

At the end of the reported quarter, Moody's had outstanding debt of US$7.8 billion and an undrawn amount of US$1.25 billion revolving credit facility.

Moody’s planning shares buyback

The company's full-year 2022 guidance includes a share buyback of at least US$1.5 billion. However, it will largely depend on the availability of cash and market conditions.

The full-year 2022 diluted earnings per share are estimated to be between US$9.85 and US$10.35. MCO anticipates full-year 2022 adjusted diluted EPS to be US$10.75 to US$11.25.

Bottom line:

However, quarter one revenue of Moody's Analytics (MA) showed an upswing of 23% to US$695 million from the same quarter the year before. It thereby records its fifth consecutive quarter of double-digit growth. MCO’s Annualized Recurring Revenue (ARR) was also up 25% to US$2.6 billion compared to the same quarter in 2021.

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