Moody’s Corporation (NYSE:MCO) today announced results for the first quarter of 2019. Revenues for MIS (Ratings) down 7%; revenues for Analytics Up 16%
- 1Q19 revenue of $1.1 billion up 1% from 1Q18
- 1Q19 diluted EPS of $1.93 up 1%; adjusted diluted EPS of $2.07 up 2% from 1Q181; both aided by a lower effective tax rate
- Record 1Q19 Moody’s Analytics revenue of $472.0 million up 16%, with double-digit growth across all business lines
- Affirming FY 2019 diluted EPS and adjusted diluted EPS guidance ranges of $7.30 to $7.55 and $7.85 to $8.10, respectively
“Moody’s first quarter revenue reflected robust performance in Moody’s Analytics across all business lines. This strength was largely offset by an expected decline in Moody’s Investors Service’s revenue as the business faced challenging year-over-year debt issuance comparisons,” said Raymond McDaniel, President and Chief Executive Officer of Moody’s. “We are affirming our full year 2019 guidance of $7.30 to $7.55 for diluted EPS and $7.85 to $8.10 for adjusted diluted EPS.”
MCO FIRST QUARTER REVENUE UP 1%
Moody’s Corporation reported revenue of $1.1 billion for the three months ended March 31, 2019, up 1% from the prior-year period.
U.S. revenue was $612.1 million, up 2%, and non-U.S. revenue was $530.0 million, approximately flat to the prior-year period. Revenue generated outside the U.S. constituted 46% of total revenue, down from 47% in the prior-year period. Foreign currency translation unfavorably impacted Moody’s revenue by 2%.
Moody’s Investors Service (MIS) First Quarter Revenue Down 7%
Revenue for MIS for the first quarter of 2019 was $670.1 million, down 7% from the prior-year period, compared to a 14% decline in issuance activity2. U.S. revenue was $411.2 million, down 5%, and non-U.S. revenue was $258.9 million, down 10%. Foreign currency translation unfavorably impacted MIS revenue by 2%. The MIS adjusted operating margin was 54.9%.
Moody’s Analytics (MA) First Quarter Revenue Up 16%
Revenue for MA for the first quarter of 2019 was $472.0 million, up 16% from the prior-year period. U.S. revenue was $200.9 million, up 22%, and non-U.S. revenue was $271.1 million, up 12%. Foreign currency translation unfavorably impacted MA revenue by 3%. Organic MA revenue for the first quarter of 2019, which excluded Reis and Omega Performance revenues, was $460.6 million, up 13% from the prior-year period. The MA adjusted operating margin was 28.1%.
Source: Moody’s Earnings Release