Summary
Moody's Corporation (MCO) reported strong performance in its 2013 10-K filing, driven by growth across both its credit rating services (MIS) and analytics (MA) segments. The company demonstrated resilience and strategic execution, with a notable increase in revenue and operating income, signaling a positive recovery and growth trajectory following the broader market disruptions experienced in prior years. Key financial highlights include significant revenue growth, improved operating margins, and a strong free cash flow generation, which supported increased shareholder returns through share repurchases and dividends. The company's diversified business model, with both recurring revenue from analytics and transaction-based revenue from ratings, appears well-positioned to navigate market dynamics and capitalize on opportunities in global financial markets.
Financial Highlights
55 data points| Revenue | $2.97B |
| R&D Expenses | $22.80M |
| SG&A Expenses | $822.10M |
| Operating Expenses | $1.74B |
| Operating Income | $1.23B |
| Net Income | $804.50M |
| EPS (Basic) | $3.67 |
| EPS (Diluted) | $3.60 |
| Shares Outstanding (Basic) | 219.40M |
| Shares Outstanding (Diluted) | 223.50M |
Key Highlights
- 1Moody's Corporation reported a 9% increase in total revenue to $2.97 billion in 2013, up from $2.73 billion in 2012, driven by growth in both MIS and MA segments.
- 2Operating income increased by 15% to $1.23 billion in 2013, with operating margin improving to 41.5% from 39.5% in 2012.
- 3Moody's Analytics (MA) segment revenue grew 8% in 2013, with particularly strong performance in Research, Data, and Analytics (RD&A) and Enterprise Risk Solutions (ERS), reflecting demand for regulatory compliance tools.
- 4Moody's Investors Service (MIS) segment revenue increased by 9% in 2013, primarily driven by strong issuance volumes in high-yield corporate debt and bank loans, alongside pricing initiatives.
- 5The company repurchased approximately $893 million of its common stock in 2013, significantly increasing its share buyback activity compared to the previous year.
- 6Moody's maintained a strong financial position, ending 2013 with $1.92 billion in cash and cash equivalents and generating $884.5 million in free cash flow.
- 7The company reported a significant increase in diluted Earnings Per Share (EPS) to $3.60 in 2013, up from $3.05 in 2012, excluding certain one-time items.