Moody's Shares Fall After 1Q Profit Drop, Lower 2022 Outlook
May 02 2022 - 9:22AM
Dow Jones News
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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