Summary
Moody's Corporation (MCO) reported strong revenue growth in 2012, with an increase of 20% year-over-year, driven by robust performance in both its Moody's Investors Service (MIS) and Moody's Analytics (MA) segments. The MIS segment saw significant growth across all lines of business, particularly in corporate finance, reflecting increased debt issuance activity. The MA segment also experienced growth across its divisions, boosted by recent acquisitions. The company's operating income grew by 21%, and diluted EPS saw a substantial increase, indicating improved profitability. Despite a $12.2 million goodwill impairment charge in the MA segment, Moody's demonstrated resilience, supported by its diversified business model and strategic investments. Looking ahead, Moody's expressed confidence in its long-term outlook, anticipating continued growth in global fixed-income markets and increased demand for its credit opinions, data, and risk management solutions. The company's strategic focus remains on defending and enhancing its core ratings business while expanding its analytics and risk management offerings. Moody's also reaffirmed its commitment to returning capital to shareholders through share repurchases and dividends.
Financial Highlights
54 data points| Revenue | $2.73B |
| R&D Expenses | $16.10M |
| SG&A Expenses | $752.20M |
| Operating Expenses | $1.65B |
| Operating Income | $1.08B |
| Net Income | $690.00M |
| EPS (Basic) | $3.09 |
| EPS (Diluted) | $3.05 |
| Shares Outstanding (Basic) | 223.20M |
| Shares Outstanding (Diluted) | 226.60M |
Key Highlights
- 1Moody's Corporation reported a 20% increase in total revenue for 2012, reaching $2.73 billion, driven by strong performance across both MIS and MA segments.
- 2Operating income rose by 21% to $1.08 billion, with an operating margin of 39.5%, indicating improved profitability.
- 3Diluted EPS increased by 22% to $3.05, reflecting the positive impact of revenue growth on earnings.
- 4Moody's Investors Service (MIS) saw revenue growth of 20%, with strong contributions from corporate finance due to increased debt issuance.
- 5Moody's Analytics (MA) segment revenue grew by 18%, supported by acquisitions and growth in its Research, Data & Analytics (RD&A), Enterprise Risk Solutions (ERS), and Professional Services (PS) businesses.
- 6The company repurchased $196.5 million of its common stock in 2012 and declared a quarterly dividend of $0.20 per share, demonstrating a commitment to shareholder returns.
- 7Despite a challenging regulatory environment and ongoing litigation, Moody's maintained effective internal controls over financial reporting.