Moody's Corporation (MCO) Reports Impressive Q3 2023 Earnings with Double-Digit Revenue Growth
Moody's Corporation (NYSE:MCO) reports a 15% increase in revenue to $1.5 billion for Q3 2023.
Diluted EPS for Q3 2023 rose by 28% to $2.11, with an adjusted diluted EPS of $2.43, up by 31%.
Full year 2023 projected diluted EPS is between $8.60 and $9.10.
Moody's reaffirms its full year adjusted diluted EPS guidance range of $9.75 to $10.25.
Moody's Corporation (NYSE:MCO) announced its Q3 2023 earnings on October 25, 2023, showcasing robust performance with double-digit revenue growth. The company's revenue for the third quarter reached $1.5 billion, marking a 15% increase. This growth reflects the rebound in issuance and demonstrates the resilience and relevance of Moody's business amidst increasing demand for its research, data, and solutions.
Financial Highlights
Moody's Analytics (MA) and Moody's Investors Service (MIS) both reported strong revenue growth for Q3 2023. MA's revenue rose by 13% to $776 million, while MIS's revenue grew by 18% to $696 million. Year-to-date (YTD) 2023 revenues for MCO, MA, and MIS were $4.4 billion (up 6%), $2.3 billion (up 10%), and $2.2 billion (up 2%) respectively.
The company's diluted EPS for Q3 2023 was $2.11, a 28% increase, while the adjusted diluted EPS was $2.43, up by 31%. YTD 2023 diluted EPS and adjusted diluted EPS were $6.88 (up 13%) and $7.71 (up 11%) respectively. The company projects a full year 2023 diluted EPS of $8.60 to $9.10.
CEO Commentary
Moody's achieved impressive double-digit revenue growth during the third quarter, reflecting the rebound in issuance and demonstrating the resiliency and relevance of our business and the increasing demand for our unparalleled research, data and solutions. We are in a new era of exponential risk which requires an urgent evolution for our customers. To address this, Moody's is investing in the momentum of the business and introducing transformative technologies to advance our capabilities, help our customers navigate decision-making at speed and scale and drive long-term sustainable growth. As a result of our robust year-to-date performance, we are reaffirming our full year adjusted diluted EPS guidance range of $9.75 to $10.25." - Rob Fauber, President and Chief Executive Officer
Outlook for Full Year 2023
Moody's updated outlook for full year 2023 reflects assumptions about numerous factors that could affect its business. These assumptions include the effects of current economic conditions, interest rates, inflation, foreign currency exchange rates, capital markets liquidity, and activity in different sectors of the debt markets. The outlook also reflects assumptions about global GDP growth, and the impacts resulting from changes in international conditions.
For more detailed financial information, please refer to the tables at the end of the press release for reconciliations of adjusted and constant currency measures to U.S. GAAP.
This article first appeared on GuruFocus.
