Summary
Moody's Corporation (MCO) reported strong revenue growth in its 2018 10-K filing, primarily driven by its Moody's Analytics (MA) segment, which saw a 21% increase in external revenue. This growth was significantly boosted by acquisitions, including Bureau van Dijk, Reis, and Omega Performance. While Moody's Investors Service (MIS) experienced a slight revenue decline of 2% due to lower corporate and public finance issuance, it was partially offset by favorable product mix and pricing. The company's overall revenue increased by 6% to $4.44 billion, with operating income rising by 3% to $1.87 billion. Moody's also benefited from a lower effective tax rate in 2018, following the U.S. Tax Act, which contributed to a 31% increase in diluted EPS to $6.74. The company continued its strategic investments in growing areas and acquisitions to enhance its data, analytics, and risk management solutions, positioning itself for long-term growth in increasingly complex financial markets.
Financial Highlights
57 data points| Revenue | $4.44B |
| Cost of Revenue | $1.25B |
| Gross Profit | $3.20B |
| R&D Expenses | $51.10M |
| SG&A Expenses | $1.08B |
| Operating Expenses | $2.58B |
| Operating Income | $1.87B |
| Net Income | $1.31B |
| EPS (Basic) | $6.84 |
| EPS (Diluted) | $6.74 |
| Shares Outstanding (Basic) | 191.60M |
| Shares Outstanding (Diluted) | 194.40M |
Key Highlights
- 1Moody's Analytics (MA) segment revenue grew 21% to $1.73 billion, significantly driven by acquisitions (Bureau van Dijk, Reis, Omega Performance).
- 2Moody's Investors Service (MIS) external revenue declined 2% to $2.71 billion, impacted by lower corporate and public finance issuance, though partially offset by pricing and product mix.
- 3Total revenue increased 6% to $4.44 billion.
- 4Operating income increased 3% to $1.87 billion.
- 5Diluted EPS increased 31% to $6.74, boosted by a lower effective tax rate (21.0% in 2018 vs. 43.6% in 2017) following the U.S. Tax Act.
- 6The company repurchased shares, with $324 million remaining authority under an existing program and an additional $1 billion authorized.
- 7Moody's made strategic acquisitions and investments, including Reis (commercial real estate data), Omega Performance (credit training), and minority stakes in QuantCube Technology and ICR Chile, to expand its capabilities and geographic reach.