The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Moody's beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Margins grew across the board.
Moody's reported revenue of $754.2 million. The seven analysts polled by S&P Capital IQ predicted revenue of $683.3 million on the same basis. 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.
EPS came in at $0.75. The eight earnings estimates compiled by S&P Capital IQ forecast $0.69 per share. GAAP EPS of $0.70 for Q4 were 63% 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 quarter, gross margin was 70.6%, 260 basis points better than the prior-year quarter. Operating margin was 36.1%, 440 basis points better than the prior-year quarter. Net margin was 21.2%, 420 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $690.1 million. On the bottom line, the average EPS estimate is $0.77.
Next year's average estimate for revenue is $2.83 billion. The average EPS estimate is $3.15.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 861 members out of 1,013 rating the stock outperform, and 152 members rating it underperform. Among 384 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 331 give Moody's a green thumbs-up, and 53 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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