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)

Copyright (c) 2022 Dow Jones & Company, Inc.
Moodys (NYSE:MCO)
Historical Stock Chart
From Jul 2022 to Aug 2022 Click Here for more Moodys Charts.
Moodys (NYSE:MCO)
Historical Stock Chart
From Aug 2021 to Aug 2022 Click Here for more Moodys Charts.