S&P 500 (NYSE:SPY) component Moody’s Corporation (NYSE:MCO) will unveil its latest earnings on Wednesday, July 27, 2011. Moody’s Corpo. provides credit ratings, credit and economic related research, data and analytical tools, risk management software and quantitative credit risk measures, credit portfolio management solutions and training services. Moody’s Now Threatening Downgrade on 5 U.S. States>>
Moody’s Corporation Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of 57 cents per share, a rise of 16.3% 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 53 cents. Between one and three months ago, the average estimate moved up, and has risen from 56 cents during the last month. For the year, analysts are projecting profit of $2.35 per share, a rise of 10.3% 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 14 cents, reporting net income of 67 cents per share against a mean estimate of profit of 53 cents per share.
Wall St. Revenue Expectations: On average, analysts predict $549.3 million in revenue this quarter, a rise of 15% from the year ago quarter. Analysts are forecasting total revenue of $2.29 billion for the year, a rise of 12.8% 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.
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 37.1% while it rose 34.8% in the fourth quarter of the last fiscal year and 35.2% in the third quarter of the last fiscal year.
Revenue has risen the past four quarters. Revenue increased 21.1% to $577.1 million in first quarter. The figure rose 16.2% in the fourth quarter of the last fiscal year from the year earlier, climbed 13.6% in the third quarter of the last fiscal year from the year-ago quarter and 6% in the second quarter of the last fiscal year.
Competitors to Watch: Equifax Inc. (NYSE:EFX), CreditRiskMonitor.com, Inc. (CRMZ), 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 April 26, 2011 to July 21, 2011, the stock price had risen $1.38 (3.9%) from $35.78 to $37.16. The stock price saw one of its best stretches over the last year between October 4, 2010 and October 13, 2010 when shares rose for eight-straight days, rising 11.6% (+$2.87) 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% (-$1.28) over that span. Shares are up $10.82 (+41.1%) year to date.
(Source: Xignite Financials)