Moody’s Corp Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Moody’s Corporation (NYSE:MCO) will unveil its latest earnings on Thursday, October 27, 2011. 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 down from 54 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 50 cents during the last month. Analysts are projecting profit to rise by 16.9% versus last year to $2.49.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 22 cents, reporting net income of 79 cents per share against a mean estimate of profit of 57 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $542.8 million in revenue this quarter, a rise of 5.7% from the year ago quarter. Analysts are forecasting total revenue of $2.31 billion for the year, a rise of 13.8% from last year’s revenue of $2.03 billion.

Analyst Ratings: Analysts seem relatively indifferent about Moody’s with three of five analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit rose 56.2% to $189 million (82 cents a share) from $121 million (51 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 26.7% to $605.2 million from $477.8 million.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 19.4%, with the biggest boost coming in the most recent quarter when revenue rose 26.7% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 37.1% in the first quarter and 34.8% in the fourth quarter of the last fiscal year.

Competitors to Watch: Equifax Inc. (NYSE:EFX), McGraw-Hill (NYSE:MHP), Paychex (NASDAQ:PAYX), Automatic Data Processing (NASDAQ:ADP), Thomson Reuters (NYSE:TRI), EDGAR (NASDAQ:EDGR), FactSet Research (NYSE:FDS), ValuLine (NASDAQ:VALU), Envestnet (NYSE:ENV), Morningstar (NASDAQ:MORN) and The Dun & Bradstreet Corp. (NYSE:DNB).

Stock Price Performance: During July 28, 2011 to October 21, 2011, the stock price had fallen $3.70 (-10.5%) from $35.08 to $31.38. 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 3.7% (+$1.37) 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. Shares are up $5.15 (+19.6%) year to date.

(Source: Xignite Financials)

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