Credit rating agency Moody’s (NYSE:MCO) will be reporting results this Wednesday before market open. Here’s what to look for.
Moody’s beat analysts’ revenue expectations last quarter, reporting revenues of $2.19 billion, up 15.1% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates 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 3.3% year on year, slowing from the 10.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will 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 Q3 results, giving us a hint as to what we can expect. FactSet delivered year-on-year revenue growth of 6.3%, beating analysts’ expectations by 0.8%, and Goldman Sachs reported revenues up 23%, topping estimates by 11.5%. FactSet traded up 6.8% following the results while Goldman Sachs was down 1.7%.
Read our full analysis of FactSet’s results here and Goldman Sachs’s results here.
Over the last year or so, investors’ attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the capital markets stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.9% on average over the last month. Moody’s is up 2.9% during the same time and is heading into earnings with an average analyst price target of $551.38 (compared to the current share price of $481.00).
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