Moody's (NYSE: MCO ) is expected to report Q2 earnings on July 24. 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 grow 12.7% and EPS will increase 15.8%.
The average estimate for revenue is $722.2 million. On the bottom line, the average EPS estimate is $0.88.
Last quarter, Moody's notched revenue of $731.8 million. GAAP reported sales were 13% higher than the prior-year quarter's $646.8 million.
Last quarter, non-GAAP EPS came in at $0.97. GAAP EPS of $0.83 for Q1 were 9.2% higher than the prior-year quarter's $0.76 per share.
For the preceding quarter, gross margin was 72.6%, 130 basis points better than the prior-year quarter. Operating margin was 38.9%, 270 basis points worse than the prior-year quarter. Net margin was 25.7%, 110 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $2.94 billion. The average EPS estimate is $3.52.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 845 members out of 995 rating the stock outperform, and 150 members rating it underperform. Among 362 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 321 give Moody's a green thumbs-up, and 41 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 $51.50.
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