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New York-based Moody's Corporation (MCO) operates as an integrated risk assessment firm. With a market cap of $85.4 billion, the company provides credit ratings and related research, data and analytical tools, quantitative credit risk measures, risk scoring software, and credit portfolio management solutions and securities pricing software and valuation models. The credit rating giant is expected to announce its fiscal fourth-quarter earnings for 2024 on Tuesday, Feb. 11.
Ahead of the event, analysts expect MCO to report a profit of $2.37 per share on a diluted basis, up 8.2% from $2.19 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect MCO to report EPS of $12.20, up 23.2% from $9.90 in fiscal 2023. Its EPS is expected to rise 8.9% year over year to $13.28 in fiscal 2025.
MCO stock has outperformed the S&P 500’s ($SPX) 24.6% gains over the past 52 weeks, with shares up 25.5% during this period. However, it underperformed the Financial Select Sector SPDR Fund’s (XLF) 33.4% gains over the same time frame.
MCO has achieved strong performance due to its acquisition of Numerated Growth Technologies, which has enhanced its Lending Suite with a comprehensive loan origination and monitoring solution. By integrating Numerated's AI-driven platform with Moody's risk data and analytics capabilities, MCO has solidified its position in the market.
On Oct. 22, MCO shares closed down by 4% after reporting its Q3 results. Its adjusted EPS of $3.21 surpassed Wall Street expectations of $2.89. The company’s revenue was $1.8 billion, beating Wall Street forecasts of $1.7 billion. MCO expects full-year adjusted EPS in the range of $11.90 to $12.10.
Analysts’ consensus opinion on MCO stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 21 analysts covering the stock, 10 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” nine give a “Hold,” and one recommends a “Strong Sell.” MCO’s average analyst price target is $508.56, indicating a potential upside of 6.2% from the current levels.
