Moody's 1Q Profit Drops With Dip in Revenue, Higher Expenses
May 02 2022 - 8:01AM
Dow Jones News
By Dean Seal
Moody's Corp. met analyst expectations for adjusted earnings and
revenue for the first quarter, though its profit fell by roughly a
third as operating expenses ticked up and its investor services
business's top line weakened.
The credit rating, research and risk analysis company on Monday
posted net income of $498 million for the quarter, compared with
$736 million in the same period a year ago. Earnings were $2.68 a
share, compared with $3.90 a share a year earlier.
Adjusted earnings were $2.89 a share. Analysts polled by FactSet
were looking for $2.90 a share.
Revenue was in line with analyst expectations at $1.5 billion, a
4.9% drop from a record $1.6 billion in the year-ago period.
Moody's Investors Services segment saw revenue of $827 million,
a 20% drop that the company attributed to geopolitical concerns,
rising yields and increasing market uncertainty that adversely
affected issuance in all asset classes. Within the segment,
corporate finance revenue fell 31% from record results a year
earlier, largely due to a decline in leveraged finance
issuance.
Moody's Analytics revenue rose 23% to $695 million for the
quarter thanks to increased demand, the company said, while its
operating expenses increased by 16% from a year earlier.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
May 02, 2022 07:46 ET (11:46 GMT)
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