Moody’s Earnings Preview: Can This Streak Continue?

Moody’s (NYSE:MCO) will report earnings before markets open on Friday, May 3rd. Moody’s Corporation is a credit rating, research, and risk analysis firm. 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.

Here is your Cheat Sheet to Moody’s Earnings:

Earnings Expectations: Analysts expect earnings of $0.85 per share on revenues of $718.01 million. Currently, the company’s P/E ratio stands at 19.57.

Analyst Trends:

Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.84 to a profit $0.88. For the current year, the average estimate is a profit of $3.51, which is better than the estimate ninety days ago.

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Earnings Trends:

Here’s how Moody’s has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 1,755 1,797 2,032 2,281 2,730
Diluted EPS ($) 1.87 1.69 2.15 2.49 3.05

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 567.10 646.80 640.80 688.50 754.20
Diluted EPS ($) 0.4266 0.76 0.76 0.81 0.7075

Past Performance:
Moody’s has beat analyst estimates 4 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]