Zacks: Brokerages Anticipate Moody’s Co. (MCO) Will Announce Quarterly Sales of $1.16 Billion

Wall Street brokerages expect that Moody’s Co. (NYSE:MCO) will report sales of $1.16 billion for the current fiscal quarter, according to Zacks Investment Research. Five analysts have provided estimates for Moody’s’ earnings, with the lowest sales estimate coming in at $1.15 billion and the highest estimate coming in at $1.17 billion. Moody’s reported sales of $1.13 billion in the same quarter last year, which indicates a positive year over year growth rate of 2.7%. The firm is expected to announce its next quarterly earnings results on Friday, February 15th.

On average, analysts expect that Moody’s will report full year sales of $4.74 billion for the current year, with estimates ranging from $4.63 billion to $4.79 billion. For the next fiscal year, analysts anticipate that the firm will post sales of $4.99 billion, with estimates ranging from $4.87 billion to $5.15 billion. Zacks Investment Research’s sales calculations are a mean average based on a survey of analysts that that provide coverage for Moody’s.

Moody’s (NYSE:MCO) last released its quarterly earnings data on Friday, February 15th. The business services provider reported $1.63 earnings per share for the quarter, missing the consensus estimate of $1.71 by ($0.08). The firm had revenue of $1.06 billion during the quarter, compared to analyst estimates of $1.14 billion. Moody’s had a net margin of 23.85% and a return on equity of 412.48%. The business’s revenue for the quarter was down 9.0% on a year-over-year basis. During the same period in the prior year, the firm earned $1.51 earnings per share.

A number of research analysts recently issued reports on the company. Cantor Fitzgerald restated a “hold” rating and set a $145.00 price objective on shares of Moody’s in a research report on Friday. Goldman Sachs Group began coverage on Moody’s in a research report on Wednesday, November 14th. They set a “neutral” rating and a $165.00 target price on the stock. Barclays reaffirmed a “buy” rating and set a $175.00 target price on shares of Moody’s in a research report on Sunday, December 9th. UBS Group dropped their price target on Moody’s from $156.00 to $154.00 and set a “neutral” rating on the stock in a research report on Tuesday, January 8th. Finally, Morgan Stanley lowered their target price on Moody’s from $171.00 to $156.00 and set a “hold” rating on the stock in a research note on Monday, October 29th. Two analysts have rated the stock with a sell rating, seven have issued a hold rating and three have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and an average price target of $168.00.

Hedge funds have recently modified their holdings of the stock. Advisory Services Network LLC increased its holdings in shares of Moody’s by 7.2% during the fourth quarter. Advisory Services Network LLC now owns 1,036 shares of the business services provider’s stock worth $145,000 after buying an additional 70 shares in the last quarter. Public Employees Retirement System of Ohio grew its stake in shares of Moody’s by 0.4% in the fourth quarter. Public Employees Retirement System of Ohio now owns 68,164 shares of the business services provider’s stock worth $9,546,000 after purchasing an additional 292 shares during the last quarter. Macquarie Group Ltd. grew its stake in shares of Moody’s by 19.0% in the fourth quarter. Macquarie Group Ltd. now owns 41,310 shares of the business services provider’s stock worth $5,785,000 after purchasing an additional 6,600 shares during the last quarter. Valley Forge Capital Management LP grew its stake in shares of Moody’s by 4.2% in the fourth quarter. Valley Forge Capital Management LP now owns 384,915 shares of the business services provider’s stock worth $53,903,000 after purchasing an additional 15,500 shares during the last quarter. Finally, National Pension Service grew its stake in shares of Moody’s by 6.3% in the fourth quarter. National Pension Service now owns 188,576 shares of the business services provider’s stock worth $30,876,000 after purchasing an additional 11,152 shares during the last quarter. Institutional investors and hedge funds own 91.65% of the company’s stock.

MCO stock traded up $5.53 during midday trading on Thursday, hitting $169.26. 2,228,820 shares of the company’s stock were exchanged, compared to its average volume of 1,004,335. Moody’s has a 12-month low of $129.26 and a 12-month high of $187.98. The company has a quick ratio of 1.38, a current ratio of 1.38 and a debt-to-equity ratio of 7.40. The company has a market capitalization of $32.43 billion, a PE ratio of 27.88, a P/E/G ratio of 1.94 and a beta of 1.27.

The company also recently disclosed a dividend, which will be paid on Monday, March 18th. Stockholders of record on Monday, February 25th will be issued a dividend of $0.50 per share. The ex-dividend date is Friday, February 22nd. Moody’s’s dividend payout ratio is presently 29.00%.

About Moody’s

Moody's Corporation provides credit ratings; and credit, capital markets, and economic related research, data, and analytical tools worldwide. It operates through two segments, Moody's Investors Service and Moody's Analytics. The Moody's Investors Service segment publishes credit ratings on various debt obligations and entities that issue such obligations comprising various corporate and governmental obligations, structured finance securities, and commercial paper programs.

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Earnings History and Estimates for Moody`s (NYSE:MCO)

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