Moody's (NYSE: MCO ) is expected to report Q1 earnings on May 3. 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 increase 11.0% and EPS will grow 11.8%.
The average estimate for revenue is $718.0 million. On the bottom line, the average EPS estimate is $0.85.
Last quarter, Moody's recorded revenue of $754.2 million. GAAP reported sales were 33% higher than the prior-year quarter's $567.1 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 $0.76. GAAP EPS of $0.71 for Q4 were 65% higher than the prior-year quarter's $0.43 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 70.6%, 260 basis points better than the prior-year quarter. Operating margin was 36.3%, 460 basis points better than the prior-year quarter. Net margin was 21.2%, 420 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $2.93 billion. The average EPS estimate is $3.45.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 850 members out of 998 rating the stock outperform, and 148 members rating it underperform. Among 351 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 307 give Moody's a green thumbs-up, and 44 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 $49.00.
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