The 10-second takeaway
For the quarter ended June 30 (Q2), Moody's beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP earnings per share expanded significantly.
Margins grew across the board.
Moody's logged revenue of $756.0 million. The seven analysts polled by S&P Capital IQ expected sales of $722.2 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $640.8 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 $1.00. The nine earnings estimates compiled by S&P Capital IQ predicted $0.88 per share. GAAP EPS of $1.00 for Q2 were 32% higher than the prior-year quarter's $0.76 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 73.9%, 210 basis points better than the prior-year quarter. Operating margin was 46.4%, 290 basis points better than the prior-year quarter. Net margin was 29.8%, 290 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $721.0 million. On the bottom line, the average EPS estimate is $0.84.
Next 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 843 members out of 993 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 $62.00.
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