Wall Street analysts expect Moody's (MCO) to post quarterly earnings of $4.23 per share in its upcoming report, which indicates a year-over-year increase of 18.8%. Revenues are expected to be $2.09 billion, up 10% from the year-ago quarter.
The consensus EPS estimate for the quarter has undergone a downward revision of 0.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
That said, let's delve into the average estimates of some Moody's metrics that Wall Street analysts commonly model and monitor.
Analysts forecast 'Revenue- Total external customers- Moody's Analytics' to reach $929.43 million. The estimate indicates a change of +4.7% from the prior-year quarter.
The consensus estimate for 'Revenue- Total external customers- Moody's Investor Services' stands at $1.15 billion. The estimate points to a change of +14% from the year-ago quarter.
Analysts' assessment points toward 'Revenue- Moody's Analytics- Data and Information' reaching $241.11 million. The estimate indicates a year-over-year change of +6.7%.
It is projected by analysts that the 'Revenue- Moody's Analytics- Research and Insights' will reach $264.16 million. The estimate suggests a change of +6.1% year over year.
The average prediction of analysts places 'Revenue- Moody's Analytics- Decision Solutions' at $427.30 million. The estimate suggests a change of +3.5% year over year.
Analysts expect 'Revenue- Moody's Investor Services- Recurring' to come in at $369.50 million. The estimate suggests a change of +6.5% year over year.
Analysts predict that the 'Revenue- Moody's Investor Services- Transaction' will reach $782.03 million. The estimate suggests a change of +18% year over year.
The combined assessment of analysts suggests that 'Revenue- Moody's Investor Services- Ratings- Corporate finance (CFG)- High-yield' will likely reach $100.63 million. The estimate suggests a change of +18.4% year over year.
The consensus among analysts is that 'Revenue- Moody's Investor Services- Ratings- Corporate finance (CFG)- Investment-grade' will reach $184.30 million. The estimate points to a change of +29.8% from the year-ago quarter.
According to the collective judgment of analysts, 'Revenue- Moody's Investor Services- Ratings- Corporate finance (CFG)- Other accounts' should come in at $194.05 million. The estimate points to a change of +3.8% from the year-ago quarter.
Based on the collective assessment of analysts, 'Revenue- Moody's Investor Services- Ratings- Structured finance (SFG)- Asset-backed securities' should arrive at $40.00 million. The estimate indicates a change of +14.3% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Revenue- Moody's Investor Services- Ratings- Structured finance (SFG)- RMBS' of $33.40 million. The estimate indicates a year-over-year change of +15.2%.
View all Key Company Metrics for Moody's here>>>Over the past month, Moody's shares have recorded returns of +13.4% versus the Zacks S&P 500 composite's +0.6% change. Based on its Zacks Rank #2 (Buy), MCO will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Moody's Corporation (MCO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).