Moody's (NYSE: MCO ) is expected to report Q4 earnings on Feb. 8. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Moody's revenues will expand 20.5% and EPS will expand 60.5%.
The average estimate for revenue is $683.3 million. On the bottom line, the average EPS estimate is $0.69.
Last quarter, Moody's chalked up revenue of $688.5 million. GAAP reported sales were 30% higher than the prior-year quarter's $531.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.75. GAAP EPS of $0.81 for Q3 were 42% higher than the prior-year quarter's $0.57 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 69.9%, 210 basis points better than the prior-year quarter. Operating margin was 39.2%, 230 basis points better than the prior-year quarter. Net margin was 26.7%, 210 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $2.66 billion. The average EPS estimate is $2.98.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 859 members out of 1,007 rating the stock outperform, and 148 members rating it underperform. Among 381 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 333 give Moody's a green thumbs-up, and 48 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 $43.75.
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