Analyst Note| Rajiv Bhatia, CFA |
Wide-moat-rated Moody’s reported first-quarter 2022 results that were reasonably close to consensus. Moody’s reported first-quarter revenue of $1.52 billion and adjusted EPS of $2.89, which compares with the FactSet consensus estimates of $1.51 billion and $2.90, respectively. However, macroeconomic volatility and rising interest rates are weighing on the firm’s bond issuance outlook and as a result the firm meaningfully reduced its revenue and earnings outlook for 2022. As we temper our near-term expectations, we are reducing our fair value estimate on Moody’s shares to $350 from $360.