Exploring Moody's's Earnings Expectations

Moody's MCO is set to give its latest quarterly earnings report on Tuesday, 2025-04-22. Here's what investors need to know before the announcement.

Analysts estimate that Moody's will report an earnings per share (EPS) of $3.56.

Anticipation surrounds Moody's's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Past Earnings Performance

During the last quarter, the company reported an EPS beat by $0.03, leading to a 0.88% drop in the share price on the subsequent day.

Here's a look at Moody's's past performance and the resulting price change:

Moody's Share Price Analysis

Shares of Moody's were trading at $424.86 as of April 18. Over the last 52-week period, shares are up 8.86%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on Moody's

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Moody's.

Analysts have provided Moody's with 9 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $520.44, suggesting a potential 22.5% upside.

Analyzing Ratings Among Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of Intercontinental Exchange, CME Group and Coinbase Global, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Intercontinental Exchange, with an average 1-year price target of $200.0, suggesting a potential 52.93% downside.
• Analysts currently favor an Neutral trajectory for CME Group, with an average 1-year price target of $262.42, suggesting a potential 38.23% downside.
• Analysts currently favor an Buy trajectory for Coinbase Global, with an average 1-year price target of $311.67, suggesting a potential 26.64% downside.

Peers Comparative Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Intercontinental Exchange, CME Group and Coinbase Global, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Moody's ranks in the middle for revenue growth among its peers. It has the lowest gross profit compared to others. Moody's has the highest return on equity among its peers.

Delving into Moody's's Background

Moody's, along with S&P Ratings, is a leading provider of credit ratings on fixed-income securities. The ratings segment, Moody's Investors Service, includes corporates, structured finance, financial institutions, and public finance ratings. MIS represents a majority of the firm's profit and about half the firm's revenue. The other segment, Moody's Analytics, consists of decision solutions, research and insights, and data and information.

Understanding the Numbers: Moody's's Finances

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Moody's displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 12.97%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Moody's's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 23.62%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Moody's's ROE stands out, surpassing industry averages. With an impressive ROE of 10.58%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Moody's's ROA stands out, surpassing industry averages. With an impressive ROA of 2.53%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Moody's's debt-to-equity ratio stands notably higher than the industry average, reaching 2.17. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Moody's visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.