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Moody’s (MCO) Beats on Q4 Earnings and Revenue Estimates


Have you been eager to see how Moody's Corporation MCO, performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this NY-based credit rating giant’s earnings release this morning:

An Earnings Beat

Moody’s reported adjusted earnings were $1.51 per share, which beat the Zacks Consensus Estimate of $1.45.

Results were primarily driven by a rise in revenues.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for Moody’s depicted bullish stance prior to the earnings release. The Zacks Consensus Estimate rose 1.4% over the last seven days.

Further, Moody’s has a decent earnings surprise history.

Moody's Corporation Price and EPS Surprise

Moody's Corporation Price and EPS Surprise | Moody's Corporation Quote

Overall, the company surpassed the Zacks Consensus Estimate by an average of 12.9% in the trailing four quarters.

Revenue Came in Higher than Expected

Moody’s reported revenues of $1.17 billion, beating the Zacks Consensus Estimate of $1.08 billion. Also, revenues grew 24% year over year.

Key Takeaways

After taking into consideration the impacts of tax reform in the U.S. and Europe, amortization of all acquisition-related intangible assets and acquisition-related expenses, Moody’s net income was $28.5 million or 13 cents per share.

As of Dec 31, 2017, Moody’s had total cash, cash equivalents and short-term investments of $1.18 billion.

In the reported quarter, Moody’s returned $72.6 million to shareholders.

Moody’s expects adjusted earnings in the range of $7.65-$7.85 per share in 2018.

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #1 (Strong Buy) for Moody’s. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While the results apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Check back later for our full write up on this Moody’s earnings report!

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