Moody’s Earns $2.89 per Share

On Friday, the S&P 500 closed out April by falling 3.6%. This marked the worst four-month start to a year since 1939.

The Federal Reserve meets again this week, and we can almost certainly expect a 0.5% rate increase, and probably a 0.75% increase at the next meeting in June.

Our streak of earnings beats came to an end today as Moody’s (MCO) reported Q1 earnings of $2.89 per share. That was one penny below expectations.

The company also cut its full-year guidance range to $9.85 to $10.35 per share. That’s down from the earlier guidance of $10.75 to $11.25 per share.

“Moody’s trusted insights and breadth of integrated risk assessment solutions are increasingly relevant in times of heightened uncertainty and market volatility,” said Rob Fauber, President and Chief Executive Officer of Moody’s. “Growth in our KYC solutions and credit research led to another impressive quarter in Moody’s Analytics. This increased demand demonstrates the benefit of MA’s highly recurring revenue business model, which balances the more cyclical nature of Moody’s Investors Service. While we are focused on strong execution across the business, as a result of MIS’s first quarter performance and our expectation for continued market volatility, we have lowered our full year 2022 adjusted diluted EPS guidance range to $10.75 to $11.25.”

Also this morning, the ISM Manufacturing Index fell to 55.4. That’s down 1.7 from March. Any number above 50 means that the factory sector of the economy is expanding.

Posted by on May 2nd, 2022 at 11:46 am


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