Analysts on Wall Street project that Moody's (MCO) will announce quarterly earnings of $2.34 per share in its forthcoming report, representing an increase of 46.3% year over year. Revenues are projected to reach $1.49 billion, increasing 15.5% from the same quarter last year.Over the last 30 days, there has been an upward revision of 1.5% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts ov ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Moody's (MCO) , which belongs to the Zacks Financial - Miscellaneous Services industry.When looking at the last two reports, this credit ratings agency has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 3.27%, on average, in the last two quarters.For the last reported quarter, Moody's came out with earnings of $ ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Moody's (MCO) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move ...

Moody’s Corporation (NYSE:MCO) Q3 2023 Earnings Conference Call October 25, 2023 11:30 AM ET Company Participants Shivani Kak – Head, IR Rob Fauber - President, CEO & Director Caroline Sullivan - Interim CFO Conference Call Participants Heather Balsky – Bank of America Merrill Lynch Faiza Alwy - Deutsche Bank Alexander Kramm - UBS Shlomo Rosenbaum - Stifel, Nicolaus & Company Craig Huber - Huber Research Partners Russell Quelch - Redburn Scott Wurtzel - Wolfe Research Owen Lau - Oppenheimer Ashish Sabadra - ...

Revenue Performance - Revenue for Q3 2023 reached $1,472 million, a 15.5% increase from $1,275 million in Q3 2022[20] - Total revenue for the nine months ended September 30, 2023, was $4,436 million, compared to $4,178 million for the same period in 2022, reflecting an increase of 6.2%[45] - Total external revenue for the MA segment was $776 million and for the MIS segment was $696 million for the three months ended September 30, 2023, resulting in consolidated revenue of $1,472 million, compared to $1,275 million in the same period of 2022, representing a year-over-year increase of 15.5%[137] - The company reported total external revenue of $1,472 million for the three months ended September 30, 2023, compared to $1,275 million for the same period in 2022, representing a year-over-year increase of 15.5%[45] - The MA segment generated $2.260 billion in revenue for the nine months ended September 30, 2023, a 6% increase from $2.120 billion in the prior year[52] Net Income and Earnings - Net income attributable to Moody's for Q3 2023 was $389 million, up 28.4% from $303 million in Q3 2022[20] - Basic earnings per share increased to $2.12 in Q3 2023, compared to $1.65 in Q3 2022, reflecting a 28.5% growth[20] - Net income for the three months ended September 30, 2023, was $390 million, compared to $303 million for the same period in 2022, representing a 28.7% increase[22] - Moody's reported a net income of $1,267 million for the period, with a diluted earnings per share of $2.31[38] Expenses and Operating Income - Total expenses for Q3 2023 were $937 million, up from $862 million in Q3 2022, representing an 8.7% increase[20] - Operating income for the nine months ended September 30, 2023, was $1,639 million, a 3.9% increase from $1,577 million in the same period of 2022[20] - Operating income for the quarter was $535 million, a 30% increase from $413 million in the prior year[157] - Adjusted Operating Income for the MA segment was $262 million and for the MIS segment was $395 million for the three months ended September 30, 2023, totaling $657 million, up from $497 million in the same period of 2022, reflecting a 32.2% increase[137] Cash Flow and Assets - Cash and cash equivalents increased to $2,006 million as of September 30, 2023, up from $1,769 million at the end of 2022[24] - Net cash provided by operating activities for the nine months ended September 30, 2023, was $1,674 million, compared to $1,097 million for the same period in 2022, indicating a 52.5% increase[26] - Total assets as of September 30, 2023, were $14,191 million, a decrease from $14,349 million as of December 31, 2022[24] Shareholder Equity and Dividends - Total shareholders' equity increased to $3,312 million as of September 30, 2023, up from $3,144 million at June 30, 2023[35] - Moody's declared a quarterly dividend of $0.77 per share, payable on December 15, 2023, to shareholders of record as of November 24, 2023[141] - The company declared dividends of $2.31 per share, totaling $425 million for the period[38] Debt and Liabilities - Long-term debt decreased to $6,851 million as of September 30, 2023, from $7,389 million at the end of 2022, reflecting a reduction of 7.3%[24] - Total liabilities decreased to $10,839 million as of September 30, 2023, from $11,660 million at the end of 2022, a reduction of 7.1%[24] - The total liabilities increased to $1.706 billion as of September 30, 2023, compared to $1.653 billion as of December 31, 2022[91] Segment Performance - The company's Decision Solutions segment generated $354 million in revenue for Q3 2023, up from $308 million in Q3 2022, reflecting a growth of 15%[45] - Research and Insights revenue reached $222 million in Q3 2023, an increase from $201 million in Q3 2022, marking a growth of 10.5%[45] - Moody's Corporate Finance segment reported $346 million in revenue for Q3 2023, compared to $277 million in Q3 2022, indicating a significant increase of 25%[45] - Total ratings revenue for Moody's Information Services (MIS) was $689 million for Q3 2023, up from $579 million in Q3 2022, which is a growth of 19%[45] Restructuring and Cost Management - The company expects annualized savings of $145 million to $165 million from the 2022-2023 Geolocation Restructuring Program, which is anticipated to be substantially complete by the end of 2023[98] - The total restructuring costs for the nine months ended September 30, 2023, amounted to $51 million, with $39 million attributed to the 2022-2023 Geolocation Restructuring Program[101] - Cash outlays related to the restructuring program are expected to be between $130 million and $140 million, to be paid through 2024[98] Tax and Compliance - The effective tax rate (ETR) for the nine months ended September 30, 2023, was 14.6%, down from 21.3% in the same period of 2022, representing a decrease of 6.7%[65] - The company was in compliance with all covenants contained within its debt agreements as of September 30, 2023[124] Market Conditions and Strategic Focus - The company continues to face macroeconomic uncertainties, including inflation and higher interest rates, which have contributed to volatility in rated issuance volumes[150] - Moody's aims to integrate sustainability-related performance metrics into the compensation of senior executives, reflecting its commitment to ESG factors[148]

Moody's Corporation (NYSE:MCO) Q2 2023 Earnings Conference Call July 25, 2023 ET Company Participants Shivani Kak – Head-Investor Relations Rob Fauber – President and Chief Executive Officer Mark Kaye – Chief Financial Officer Conference Call Participants Owen Lau – Oppenheimer George Tong – Goldman Sachs Manav Patnaik – Barclays Kevin McVeigh – Credit Suisse Alex Kramm – UBS Ashish Sabadra – RBC Capital Markets Toni Kaplan – Morgan Stanley Andrew Nicholas – William Blair Craig Huber – Huber Research Partne ...

Second Quarter 2023 Earnings Call Introduction Shivani Kak Head of Investor Relations ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form10-Q (Mark one) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ☑ EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 Or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ☐ EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-14037 ____________________ Moody’s Corporation (Exact name of registrant as specified in its charter) Delaware 13-3998945 (State of ...

Moody’s Corporation (NYSE:MCO) Q1 2023 Results Conference Call April 15, 2023 12:30 PM ET Company Participants Shivani Kak - Head, IR Rob Fauber - President and CEO Mark Kaye - CFO Conference Call Participants Owen Lau - Oppenheimer Andrew Nicholas - William Blair Kevin McVeigh - Credit Suisse Toni Kaplan - Morgan Stanley Alex Kramm - UBS Ashish Sabadra - RBC Capital Markets George Tong - Goldman Sachs Jeff Silber - BMO Capital Markets Craig Huber - Huber Research Partners Andrew Steinerman - JP Morgan Faiz ...

Revenue and Financial Performance - Revenue for Q1 2023 was $1.47 billion, a decrease from $1.522 billion in Q1 2022[17] - Moody's Corporation reported a total revenue of $1.47 billion for the first quarter of 2023, compared to $1.522 billion in the same period in 2022[36] - Total revenue for Moody's Corporation in Q1 2023 was $1.47 billion, with 32% from Transaction Revenue and 68% from Recurring Revenue[43] - Total external revenue for the three months ended March 31, 2023 was $1,470 million, compared to $1,522 million in the same period in 2022[119] - Moody's total revenue for Q1 2023 was $1.47 billion, a 3% decrease compared to $1.522 billion in Q1 2022[135] - MCO revenue decreased by 3% to $1.470 billion in Q1 2023, with constant currency decline of 2% to $1.498 billion[211] Operating Income and Expenses - Operating income for Q1 2023 was $554 million, down from $656 million in Q1 2022[17] - Total expenses for Q1 2023 increased to $916 million from $866 million in Q1 2022[17] - Adjusted Operating Income for the three months ended March 31, 2023 was $656 million, compared to $734 million in the same period in 2022[119] - Operating margin decreased by 540 basis points to 37.7% in Q1 2023, compared to 43.1% in Q1 2022[135] - Adjusted Operating Margin declined by 360 basis points to 44.6% in Q1 2023, down from 48.2% in Q1 2022[135] - Operating margin declined to 37.7%, down 540 basis points (BPS), while adjusted operating margin fell to 44.6%, down 360 BPS, primarily due to decreased MIS revenue and increased MA operating and SG&A expenses[145] - Adjusted Operating Margin was 44.6% in Q1 2023, compared to 48.2% in Q1 2022[204] Net Income and Earnings Per Share - Net income attributable to Moody's for Q1 2023 was $501 million, compared to $498 million in Q1 2022[17] - Earnings per share (EPS) for Q1 2023 was $2.72 (diluted), slightly up from $2.68 in Q1 2022[17] - Net income for Q1 2023 was $501 million, slightly higher than the $498 million reported in Q1 2022[24] - The company's net income for the first quarter of 2023 was $501 million, with dividends of $0.77 per share and stock-based compensation of $140 million[30] - Diluted EPS increased by 1% to $2.72 in Q1 2023, compared to $2.68 in Q1 2022[135] - Adjusted Diluted EPS rose by 3% to $2.99 in Q1 2023, up from $2.89 in Q1 2022[135] - Diluted EPS increased by $0.04, and adjusted diluted EPS rose by $0.10, benefiting from a $0.75/share gain from tax matter resolutions, partially offset by lower operating income[149] Segment Performance - The MA segment generated $737 million in external revenue, with Decision Solutions contributing $354 million, Research and Insights $195 million, and Data and Information $188 million[36] - The MIS segment reported $733 million in external revenue, with Corporate Finance contributing $356 million, Structured Finance $99 million, Financial Institutions $142 million, and Public, Project and Infrastructure Finance $129 million[36] - Total external revenue for the MA segment increased by 6% year-over-year, from $695 million in Q1 2022 to $737 million in Q1 2023[36] - Decision Solutions segment revenue increased to $354 million in Q1 2023, up from $334 million in Q1 2022, with Recurring Revenue accounting for 88% of the total[43] - Corporate Finance segment revenue decreased to $356 million in Q1 2023 from $417 million in Q1 2022, with Transaction Revenue dropping from 70% to 65% of the total[43] - Total MIS revenue decreased to $733 million in Q1 2023 from $827 million in Q1 2022, with Transaction Revenue accounting for 59% of the total[43] - MIS external revenue declined by 11% to $733 million in Q1 2023, down from $827 million in Q1 2022[135] - MA external revenue increased by 6% to $737 million in Q1 2023, up from $695 million in Q1 2022[135] - Moody's Analytics (MA) revenue increased 6% to $740 million, with Decision Solutions (DS) revenue up 6%, Research and Insights (R&I) up 7%, and Data and Information (D&I) up 6%[152] - Moody's Investors Service (MIS) revenue decreased 11% to $778 million, with Corporate Finance (CFG) revenue down 15% and Structured Finance (SFG) revenue down 31%[164] - MIS adjusted operating margin declined to 56.8%, down 180 BPS, primarily due to the 11% decrease in revenue[187] - MA revenue increased by 6% to $737 million in Q1 2023 compared to $695 million in Q1 2022[211] - Constant currency MA revenue grew by 9% to $755 million in Q1 2023[211] - Decision Solutions revenue rose by 6% to $354 million in Q1 2023, with constant currency growth of 8% to $361 million[211] - Research and Insights revenue increased by 7% to $195 million in Q1 2023, with constant currency growth of 8% to $198 million[211] - Data and Information revenue grew by 6% to $188 million in Q1 2023, with constant currency growth of 10% to $196 million[211] - Total MA ARR increased by 10% to $2.752 billion in Q1 2023 compared to $2.501 billion in Q1 2022[214] - Decision Solutions ARR grew by 11% to $1.234 billion in Q1 2023[214] - Research and Insights ARR increased by 9% to $770 million in Q1 2023[214] - Data and Information ARR rose by 9% to $748 million in Q1 2023[214] Cash Flow and Liquidity - Net cash provided by operating activities increased to $608 million in Q1 2023, compared to $470 million in Q1 2022[24] - Cash and cash equivalents increased to $2,119 million in Q1 2023 from $1,769 million in Q4 2022, reflecting a $350 million increase[22] - Net cash provided by operating activities increased by $138 million to $608 million in Q1 2023 compared to $470 million in Q1 2022, primarily due to higher incentive compensation payments in 2022[190][191] - Free Cash Flow rose by $124 million to $535 million in Q1 2023, up from $411 million in Q1 2022[190] - Net cash used in investing activities decreased by $98 million to $63 million in Q1 2023, reflecting lower acquisition-related payments compared to 2022[192] - Net cash used in financing activities decreased by $136 million to $216 million in Q1 2023, driven by lower treasury share repurchases and no long-term debt issuance in 2023[192] - The company's cash and cash equivalents totaled $2.2 billion as of March 31, 2023, with $1.7 billion located outside the U.S.[192] Debt and Financial Obligations - Long-term debt decreased to $6,963 million in Q1 2023 from $7,389 million in Q4 2022, reflecting debt repayment efforts[22] - Total debt carrying value as of March 31, 2023 was $7.462 billion, with a principal amount of $7.758 billion[104] - Current portion of long-term debt as of March 31, 2023 was $499 million, with total long-term debt at $6.963 billion[104] - The company's debt repayment schedule shows $500 million due in 2024, $700 million in 2025, and $6.015 billion thereafter[106] - Interest rate swaps reduced the carrying value of debt by $192 million as of March 31, 2023[104] - The company was in compliance with all debt covenants as of March 31, 2023, with no cross defaults reported[105] - Future interest payments and fees associated with the company's debt are expected to be $4.9 billion, with $334 million due in the next 12 months[194] - Purchase obligations totaled $244 million as of March 31, 2023, with $151 million expected to be paid in the next 12 months[196] - Operating lease payments totaled $490 million as of March 31, 2023, with $118 million due in the next 12 months[197] Shareholder Equity and Dividends - Total shareholders' equity increased to $2.891 billion as of March 31, 2023, up from $2.519 billion at the end of 2022[30] - Dividends paid in Q1 2023 totaled $141 million, up from $130 million in Q1 2022[24] - The company declared a quarterly dividend of $0.77 per share of common stock, payable on June 9, 2023[122] - The company approved a quarterly dividend of $0.77 per share and had $807 million remaining in share repurchase authority as of March 31, 2023[199] Comprehensive Income and Other Financial Metrics - Comprehensive income attributable to Moody's for Q1 2023 was $555 million, up from $437 million in Q1 2022[20] - Foreign currency translation adjustments resulted in a net gain of $107 million in Q1 2023, compared to a net loss of $107 million in Q1 2022[20] - Net losses on net investment hedges were $57 million in Q1 2023, compared to net gains of $47 million in Q1 2022[20] - Total other comprehensive income for Q1 2023 was $51 million, compared to a loss of $61 million in Q1 2022[20] - Foreign currency translation adjustments resulted in a loss of $736 million in Q1 2023, contributing to a total comprehensive loss of $643 million[101] - Total net gain in Accumulated Other Comprehensive Income (AOCL) as of March 31, 2023: $84 million (Net investment hedges: $128 million, Cash flow hedges: $(44) million)[75] Taxes and Tax Benefits - Moody's effective tax rate (ETR) decreased to 1.0% in Q1 2023 from 18.2% in Q1 2022, primarily due to tax benefits of $117 million from resolutions of uncertain tax positions[57] - Income taxes paid decreased to $66 million in Q1 2023 from $70 million in Q1 2022[57] - Effective tax rate (ETR) decreased by 1,720 BPS, reflecting a $113 million reduction in income tax provision due to the resolution of uncertain tax positions[148] Stock-Based Compensation and Share Repurchases - Stock-based compensation cost for Q1 2023 was $47 million, with a tax benefit of $10 million[53] - Unrecognized stock-based compensation expense at March 31, 2023 was $20 million for stock options and $354 million for unvested restricted stock[54] - Proceeds from stock option exercises increased to $7 million in Q1 2023 from $3 million in Q1 2022[55] - Aggregate intrinsic value of stock options exercised rose to $15 million in Q1 2023 from $4 million in Q1 2022[55] - Tax benefit realized upon exercise of stock options increased to $4 million in Q1 2023 from $1 million in Q1 2022[55] - Treasury stock repurchases amounted to $41 million in Q1 2023, significantly lower than the $560 million repurchased in Q1 2022[24] - The Company repurchased 1.5 million shares under the ASR program at a volume-weighted average price of $324.20 per share[60] Geographic Revenue Breakdown - Moody's Corporation's U.S. revenue for the first quarter of 2023 was $770 million, while non-U.S. revenue was $700 million[40] - The MA segment's U.S. revenue was $324 million, with EMEA contributing $278 million, Asia-Pacific $80 million, and Americas $55 million[41] - The MIS segment's U.S. revenue was $446 million, with EMEA contributing $173 million, Asia-Pacific $71 million, and Americas $43 million[41] - Revenue from the United States for the three months ended March 31, 2023 was $770 million, compared to $823 million in the same period in 2022[121] - Revenue from the EMEA region for the three months ended March 31, 2023 was $451 million, compared to $457 million in the same period in 2022[121] - U.S. revenue decreased by 6% to $770 million in Q1 2023, down from $823 million in Q1 2022[137] - Asia-Pacific revenue increased by 7% to $151 million in Q1 2023, up from $141 million in Q1 2022[137] Derivatives and Hedging Activities - Moody's Corporation modified the contractual terms of certain interest rate swaps and cross-currency swaps in the first quarter of 2023, replacing LIBOR/EURIBOR-based reference rates with SOFR/ESTR-based rates[34] - Total notional amount of swaps as of March 31, 2023: €2,903 million (Pay Fixed/Receive Fixed: €765 million at 3.67%, Pay Floating/Receive Floating: €2,138 million based on ESTR) and $3,050 million (Receive Fixed: $800 million at 5.25%, Receive Floating: $2,250 million based on SOFR)[71] - Cumulative gains/(losses) on net investment hedges as of March 31, 2023: $128 million (Cross currency swaps: $79 million, FX forwards: $29 million, Long-term debt: $20 million)[75] - Cumulative gains/(losses) on cash flow hedges as of March 31, 2023: $(44) million (Interest rate contracts: $(46) million, Cross currency swaps: $2 million)[75] - Notional amount of foreign exchange forwards as of March 31, 2023: $295 million (Sell USD for GBP), $15 million (Sell USD for JPY), $78 million (Sell USD for CAD), $52 million (Sell USD for SGD), $160 million (Sell USD for EUR), $23 million (Sell USD for INR), €25 million (Sell EUR for USD)[77] - Net losses on derivatives not designated as hedging instruments: $5 million (FX forwards)[78] - Total assets from derivatives designated as accounting hedges: $16 million (Cross-currency swaps: $12 million, FX forwards: $4 million)[80] - Total liabilities from derivatives designated as accounting hedges: $307 million (Cross-currency swaps: $115 million, Interest rate swaps: $192 million)[80] Restructuring and Cost Savings - The 2022-2023 Geolocation Restructuring Program is expected to result in annualized savings of $120 million to $140 million per year[84] - Restructuring charges recognized during Q1 2023 were $14 million, primarily related to employee termination costs[84] - Cumulative expense incurred through March 2023 for the 2022-2023 Geolocation Restructuring Program was $98 million for employee termination costs and $28 million for real estate related costs[86] Other Financial Metrics and Adjustments - Total current assets rose to $4,426 million in Q1 2023, up from $4,094 million in Q4 2022, driven by higher cash and accounts receivable[22] - Deferred revenue grew to $1,578 million in Q1 2023, up from $1,258 million in Q4 2022, indicating strong customer commitments[22] - Retained earnings increased to $13,979 million in Q1 2023 from $13,618 million in Q4 2022, reflecting net income accumulation[22] - Capital additions for Q1 2023 were $73 million, compared to $59 million in Q1 2022, indicating increased investment in property and equipment[24] - Interest expense, net for Q1 2023 was $48 million, down from $53 million in Q1 2022[17] - Basic weighted average shares outstanding decreased to 183.3 million in Q1 2023 from 185.1 million in Q1 2022[59] - Diluted weighted average shares outstanding decreased to 184.1 million in Q1 2023 from 186.1 million in Q1 2022[59] - Fair value of cash equivalents and short-term investments decreased to $729 million in Q1 2023 from $914 million in Q4 2022[62] - Contract value of Corporate-Owned Life Insurance (COLI) increased to $44 million in Q1 2023 from $40 million in Q4 2022[62] - Total acquired intangible assets, net decreased from $2,210 million in December 2022 to $2,177 million in March 2023[83] - Total fair value of assets decreased from $117 million in December 2022 to $99 million in March 2023, primarily due to a decrease in derivatives from $46 million to $16 million[88] - Total other current assets decreased from $583 million in December 2022 to $517 million in March 2023, with prepaid taxes decreasing from $235 million to $191 million[92] - Total accounts payable and accrued liabilities decreased from $1,011 million in December 2022 to $805 million in March 2023, with incentive compensation decreasing from $276 million to $88