Moody’s Corp Prepares for Q4 Earnings, Analysts Predict Strong Growth
Moody’s Corporation (MCO), based in New York, is a leader in risk assessment services. With a market capitalization of $85.4 billion, the company provides credit ratings, research, data analytics, quantitative credit risk measures, software for risk scoring, and solutions for credit portfolio management, including securities pricing models. Investors are keenly awaiting the announcement of its fiscal fourth-quarter earnings for 2024, set for Tuesday, February 11.
Anticipated Earnings and Performance Insights
Analysts predict that MCO will report earnings of $2.37 per share on a diluted basis, reflecting an 8.2% increase from $2.19 per share in the prior year’s fourth quarter. The company has consistently outperformed expectations, beating consensus estimates in three of the last four quarters, while missing forecasts on one occasion.
Full-Year Projections Look Promising
For the entire fiscal year, MCO is expected to achieve earnings per share (EPS) of $12.20, a significant increase of 23.2%, compared to $9.90 in fiscal 2023. The company’s EPS is further projected to rise 8.9% year over year to reach $13.28 in fiscal 2025.
Stock Performance Against Benchmarks
MCO’s stock has performed well over the past year, surpassing the S&P 500’s gain of 24.6% with a rise of 25.5% during the same period. Nevertheless, it lagged behind the Financial Select Sector SPDR Fund’s (XLF) growth of 33.4% over this timeframe.
Strategic Acquisitions Boost Growth
The strong performance of MCO can be attributed to its acquisition of Numerated Growth Technologies. This has strengthened its Lending Suite, offering a comprehensive solution for loan origination and monitoring. The integration of Numerated’s AI platform with Moody’s robust risk analytics has reinforced its competitive position.
Quarterly Results Reflect Positive Trend
On October 22, MCO’s stock dipped by 4% following the release of its Q3 results. The company’s adjusted EPS stood at $3.21, exceeding Wall Street’s expectations of $2.89. Revenue reached $1.8 billion, outpacing forecasts of $1.7 billion. MCO projects full-year adjusted EPS to be in the range of $11.90 to $12.10.
Analyst Ratings Offer a Mixed Outlook
The consensus on MCO stock is moderately bullish, receiving an overall “Moderate Buy” rating. Of the 21 analysts covering the stock, 10 recommend a “Strong Buy,” one suggests a “Moderate Buy,” nine rate it as a “Hold,” and one analyst advises a “Strong Sell.” The average price target set by analysts is $508.56, signaling a possible upside of 6.2% from current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
