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Based in New York, Moody's Corporation (MCO) is an integrated risk assessment firm worldwide. Valued at $79.60 billion by market cap, the company provides credit ratings and related research, data and analytical tools, quantitative credit risk measures, risk scoring software, credit portfolio management solutions, securities pricing software, and valuation models. The leading risk assessment company is expected to announce its fiscal second-quarter earnings for 2024 on Tuesday, Jul. 23.
Ahead of the event, analysts expect MCO to report a profit of $2.80 per share on a diluted basis, up 21.7% from $2.30 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on one other occasion. During the previous quarter, MCO repurchased 0.3 million shares at an average price of $384.20 per share.
For fiscal 2024, analysts expect MCO to report EPS of $10.84, up 9.5% from $9.90 in fiscal 2023.
MCO stock has underperformed the S&P 500’s ($SPX) 18.1% gains on a YTD basis, with shares up 12% during this period. However, it outshined the S&P 500 Financials Sector SPDR’s (XLF) 11.5% gains over the same time frame.
On May 2, MCO reported its Q1 results. Its adjusted EPS stood at $3.37, beating the consensus estimates of $3.06. The company’s revenue was $1.79 billion, surpassing the Wall Street estimates of $1.73 billion. MCO expects full-year adjusted EPS to be between $10.40 and $11, narrower than the previous guidance of $10.25 and $11. It expects its revenues to increase in the high-single-digit to low-double-digit percent range. MCO shares closed up marginally on the day the results were released and have been on an uptrend since then.
Analysts’ consensus opinion on MCO stock is bullish, with a “Moderate Buy” rating overall. Out of 17 analysts covering the stock, 10 advise a “Strong Buy” rating, one has a “Moderate Buy” rating, and six recommend a “Hold.” The average analyst price target for MCO is $415.21, indicating a 5% potential downside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
