Moody's
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Moody's beat slightly on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins contracted, and net margins dropped.
Revenue details
Moody's tallied revenue of $567.1 million. The six analysts polled by S&P Capital IQ predicted a top line of $558.5 million. GAAP sales were 0.5% higher than the prior-year quarter's $564.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.43. The six earnings estimates compiled by S&P Capital IQ averaged $0.49 per share. GAAP EPS of $0.43 for Q4 were 27% lower than the prior-year quarter's $0.59 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 68.0%, 10 basis points better than the prior-year quarter. Operating margin was 30.3%, 460 basis points worse than the prior-year quarter. Net margin was 17.0%, 730 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $599.4 million. On the bottom line, the average EPS estimate is $0.68.
Next year's average estimate for revenue is $2.42 billion. The average EPS estimate is $2.62.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 884 members out of 1,042 rating the stock outperform, and 158 members rating it underperform. Among 391 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 336 give Moody's a green thumbs-up, and 55 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Moody's is hold, with an average price target of $38.83.
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