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Moody's (MCO) Beats on Q1 Earnings and Revenue Estimates

Zacks Equity Research

Have you been eager to see how Moody's MCO, performed in Q1 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 $2.07 per share, which beat the Zacks Consensus Estimate of $1.88.

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 bearish stance prior to the earnings release. The Zacks Consensus Estimate moved 1.1% lower over the past 30 days.

Further, Moody’s has a decent earnings surprise history. Overall, the company surpassed the Zacks Consensus Estimate by an average of 3.1% in the trailing four quarters.

Moody's Corporation Price and EPS Surprise

 

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

Revenue Came in Higher than Expected

Moody’s reported revenues of $1.14 billion, beating the Zacks Consensus Estimate of $1.13 billion. Also, revenues grew 1% year over year.

Key Q1 Takeaways
 

  • After taking into consideration certain non-recurring items, net income was $372.9 million or $1.93 per share.
  • As of Mar 31, 2019, Moody’s had total cash, cash equivalents and short-term investments of $1.3 billion.
  • In the reported quarter, Moody’s returned $500 million to shareholders.
  • Moody’s affirmed expecting adjusted earnings in the range of $7.85-$8.10 per share in 2019.


What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) 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 (Strong Buy) stocks here.

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

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