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With a market cap of $78.3 billion, Moody's Corporation (MCO) is a global leader in credit ratings, risk analysis, and financial data services. Operating through Moody’s Investors Service and Moody’s Analytics, the company provides credit ratings for debt issuers and offers tools, software, and data solutions for risk management and regulatory compliance. New York-based Moody’s plays a key role in global financial markets and is one of the "Big Three" credit rating agencies.
The credit rating giant is expected to announce its fiscal first-quarter earnings for 2025 on Tuesday, Apr. 22. Ahead of the event, analysts expect MCO to report a profit of $3.57 per share on a diluted basis, up 5.9% from $3.37 per share in the year-ago quarter. The company has beaten the consensus estimates in each of the last four quarters, which is admirable.
For the current year, analysts expect MCO to report EPS of $13.94, up 11.8% from $12.47 in fiscal 2024. Its EPS is expected to rise 12.3% year over year to $15.66 in fiscal 2026.
Over the past 52 weeks, MCO has climbed 14.8%, outperforming the S&P 500’s ($SPX) 4.4% gains. However, the stock lagged behind the Financial Select Sector SPDR Fund (XLF) which surged 17.5% gains over the same period.
Moody’s shares climbed 4.4% on Feb. 13, after posting its fourth-quarter earnings report. While its revenue of $1.7 billion fell short of expectations, the market responded positively to a stronger-than-expected adjusted EPS of $2.62, a 20% year-over-year increase, as well as an encouraging 2025 outlook. The company projected high-single-digit revenue growth for the year, along with an adjusted EPS between $14 and $14.50.
Analysts’ consensus opinion on MCO stock is fairly hopeful, with a “Moderate Buy” rating overall. Out of 23 analysts covering the stock, 11 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” ten give a “Hold,” and one recommends a “Strong Sell.”
MCO’s average analyst price target is $524.90, indicating a potential upside of 23.3% from the current levels.
