Moody’s Corp. reported a first-quarter FY22 revenue decline of 5 percent year-on-year to $1.52 billion, beating the consensus of $1.51 billion.
Revenue for MIS was $827 million, down 20 percent Y/Y as geopolitical concerns, rising yields, and elevated market uncertainty affected issuance in all asset classes. Foreign currency translation unfavorably impacted MIS revenue by 1 percent.
Moody’s Analytics revenue grew 23 percent Y/Y to $695 million.
Corporate finance revenue was $417 million, down 31 percent Y/Y, mainly due to the decline in leveraged finance issuance.
The operating expenses shot up 16 percent Y/Y to $866 million. The adjusted operating margin contracted 890 bps to 48.2 percent.
Adjusted EPS of $2.89 missed the consensus of $2.90.
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