By Dean Seal

 

Shares of Moody's Corp. fell more than 7.7% in pre-market trading after the credit ratings and research firm reported a 32% drop in its first-quarter profit and lowered its full-year earnings and revenue guidance.

The company's stock hit a low of $291.99 after closing on Friday at $316.48.

Moody's said early Monday morning that net income plummeted in the first quarter of 2022 as its operating expenses increased and the top line of its investor services business weakened. Revenue of $1.52 billion for the period was 5% lower than the record first quarter it saw in 2021, in line with analyst expectations.

The New York City-based company also revised its full-year outlook, telling investors that it now expects to post adjusted earnings of between $10.75 and $11.25 a share, compared with its previous forecast of $12.40 to $12.90 a share, and for revenue to remain flat rather than increase. The revision was attributed to its first-quarter results and an expectation of ongoing market volatility.

Shares of Moody's are down nearly 19% since the start of the year.

 

Write to Dean Seal at dean.seal@wsj.com

 

(END) Dow Jones Newswires

May 02, 2022 09:07 ET (13:07 GMT)

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