Moody’s(US:MCO)2023-10-25 16:00Revenue 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]