Shares of Moody's Corp. $(MCO)$ fell 7.74% in premarket trades on Monday after the debt ratings firm said it expects flat revenue in 2022 and adjusted 2022 earnings of $10.75 a share to $11.25 a share.
Moody's said the view is based on a projection for continued volatility in 2022. Wall Street analysts had expected 2022 earnings of $11.92 a share, with an increase in revenue to $6.42 billion from $6.22 billion in 2021, according to FactSet data.
Moody's reported first-quarter profit of $498 million, or $2.68 a share, down from $736 million, or $3.90 a share in the year-ago quarter. Adjusted net income totaled $2.89 a share. Revenue fell 5% to $1.52 billion.
Analysts expected earnings of $2.90 a share and revenue of $1.51 billion. Prior to Monday's trades, Moody's shares are down 19% in 2022, compared to a loss of 13.3% by the S&P 500 .