Moody’s Corp Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Moody’s Corporation (NYSE:MCO) will unveil its latest earnings on Wednesday, February 8, 2012. Moody’s provides credit ratings, credit and economic related research, data and analytical tools, risk management software, quantitative credit risk measures, credit portfolio management solutions, and training services.

Moody’s Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 49 cents per share, a decline of 15.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 47 cents. Between one and three months ago, the average estimate was unchanged. It has risen during the last month. For the year, analysts are projecting net income of $2.52 per share, a rise of 18.3% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 5 cents, reporting profit of 54 cents per share against a mean estimate of net income of 49 cents per share.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 0.5% in revenue from the year-earlier quarter to $567.3 million.

Analyst Ratings: Analysts are bullish on Moody’s as two analysts rate it as a buy, none rate it as a sell and two rate it as a hold.

A Look Back: In the third quarter, profit fell 3.9% to $130.7 million (57 cents a share) from $136 million (58 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 3.5% to $531.3 million from $513.3 million.

Key Stats:

The decrease in profit in the third quarter broke a streak of three consecutive quarters of year-over-year profit increases. Net income rose 56.2% in the second quarter, 37.1% in the first quarter and 34.8% in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue rose 26.7% in the second quarter from the year earlier, climbed 21.1% in the first quarter from the year-ago quarter and 16.2% in the fourth quarter of the last fiscal year.

Stock Price Performance: During January 4, 2012 to February 2, 2012, the stock price had risen $2.39 (6.8%) from $35.07 to $37.46. The stock price saw one of its best stretches over the last year between May 11, 2011 and May 19, 2011 when shares rose for seven-straight days, rising 3.6% (+$1.36) over that span. It saw one of its worst periods between April 29, 2011 and May 6, 2011 when shares fell for six-straight days, falling 3.3% (-$1.27) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at

To contact the editor responsible for this story: Damien Hoffman at