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

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

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

  • Moody’s Corporation (NYSE: MCO) Q1 2022 revenue of US$1.5 billion is down from the year-ago quarter by 5%.
  • Moody’s Corporation has a strong employee base of 14,000 people, spanning 40 countries.
  • MCO’s adjusted diluted EPS remained at US$2.68, down 29% from the year-ago quarter.

Global risk assessment firm Moody's Corporation (NYSE: MCO) on Monday reported first-quarter revenue of US$1.5 billion, down 5% year-on-year.    

Moody's has a significant global presence with a 14,000-strong workforce in more than 40 countries. Its diluted EPS of US$2.68 is down by 29% from the year-ago quarter.

Moody's revenue from the Investors Service division was US$827 million, down 20% on a rated issuance decline of 25%.

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

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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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