Moody's (MCO) Reports Earnings Tomorrow: What To Expect
Credit rating agency Moody's (NYSE:MCO) will be announcing earnings results this Wednesday before the bell. Here’s what you need to know.
Moody's beat analysts’ revenue expectations last quarter, reporting revenues of $1.89 billion, up 13% year on year. It was a strong quarter for the company, with full-year EPS guidance meeting analysts’ expectations and a beat of analysts’ EPS estimates.
Is Moody's a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Moody’s revenue to grow 7.1% year on year, in line with the 7.7% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Moody's rarely misses Wall Street’s revenue estimates.
Looking at Moody’s peers in the capital markets segment, some have already reported their Q1 results, giving us a hint as to what we can expect. FactSet delivered year-on-year revenue growth of 7.1%, beating analysts’ expectations by 1.1%, and BNY reported revenues up 13.8%, topping estimates by 4.3%. FactSet traded up 9.9% following the results while BNY was also up 2.4%.
Read our full analysis of FactSet’s results here and BNY’s results here.
There has been positive sentiment among investors in the capital markets segment, with share prices up 12.4% on average over the last month. Moody's is up 4.2% during the same time and is heading into earnings with an average analyst price target of $534.05 (compared to the current share price of $459.39).
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