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Moody's (MCO) Reports Q3 Earnings: What Key Metrics Have to Say
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Moody's (MCO - Free Report) reported $1.47 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 15.5%. EPS of $2.43 for the same period compares to $1.85 a year ago.
The reported revenue represents a surprise of +0.64% over the Zacks Consensus Estimate of $1.46 billion. With the consensus EPS estimate being $2.35, the EPS surprise was +3.40%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Moody's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Total external customers- Moody's Analytics: $776 million versus the five-analyst average estimate of $766.64 million. The reported number represents a year-over-year change of +13.3%.
Revenue- Total external customers- Moody's investor services: $696 million versus $711.27 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +18% change.
Revenue- Moody's Analytics- Decision Solutions: $354 million versus the four-analyst average estimate of $353.25 million.
Revenue- Moody's Analytics- Research and Insights: $222 million versus $215.51 million estimated by four analysts on average.
Revenue- Moody's Analytics- Data and Information: $200 million compared to the $197.54 million average estimate based on four analysts.
Revenue- Moody's Analytics: $776 million versus $769.06 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +13% change.
Revenue- Moody's investor services: $696 million versus the three-analyst average estimate of $746.31 million. The reported number represents a year-over-year change of +10%.
Revenue- Moody's investor services- Public, project and infrastructure finance: $115 million versus the three-analyst average estimate of $118.15 million. The reported number represents a year-over-year change of +25%.
Revenue- Moody's investor services- Financial institutions: $126 million compared to the $128.77 million average estimate based on three analysts. The reported number represents a change of +15.6% year over year.
Revenue- Moody's investor services- Structured finance: $102 million versus the three-analyst average estimate of $101.92 million. The reported number represents a year-over-year change of +1%.
Revenue- Moody's investor services- Corporate finance: $346 million compared to the $341.91 million average estimate based on three analysts. The reported number represents a change of +24.9% year over year.
Revenue- Moody's investor services- Relationship: $308 million versus the three-analyst average estimate of $306.17 million.
Shares of Moody's have returned -3.1% over the past month versus the Zacks S&P 500 composite's -1.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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Moody's (MCO) Reports Q3 Earnings: What Key Metrics Have to Say
Moody's (MCO - Free Report) reported $1.47 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 15.5%. EPS of $2.43 for the same period compares to $1.85 a year ago.
The reported revenue represents a surprise of +0.64% over the Zacks Consensus Estimate of $1.46 billion. With the consensus EPS estimate being $2.35, the EPS surprise was +3.40%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Moody's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Revenue- Total external customers- Moody's Analytics: $776 million versus the five-analyst average estimate of $766.64 million. The reported number represents a year-over-year change of +13.3%.
- Revenue- Total external customers- Moody's investor services: $696 million versus $711.27 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +18% change.
- Revenue- Moody's Analytics- Decision Solutions: $354 million versus the four-analyst average estimate of $353.25 million.
- Revenue- Moody's Analytics- Research and Insights: $222 million versus $215.51 million estimated by four analysts on average.
- Revenue- Moody's Analytics- Data and Information: $200 million compared to the $197.54 million average estimate based on four analysts.
- Revenue- Moody's Analytics: $776 million versus $769.06 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +13% change.
- Revenue- Moody's investor services: $696 million versus the three-analyst average estimate of $746.31 million. The reported number represents a year-over-year change of +10%.
- Revenue- Moody's investor services- Public, project and infrastructure finance: $115 million versus the three-analyst average estimate of $118.15 million. The reported number represents a year-over-year change of +25%.
- Revenue- Moody's investor services- Financial institutions: $126 million compared to the $128.77 million average estimate based on three analysts. The reported number represents a change of +15.6% year over year.
- Revenue- Moody's investor services- Structured finance: $102 million versus the three-analyst average estimate of $101.92 million. The reported number represents a year-over-year change of +1%.
- Revenue- Moody's investor services- Corporate finance: $346 million compared to the $341.91 million average estimate based on three analysts. The reported number represents a change of +24.9% year over year.
- Revenue- Moody's investor services- Relationship: $308 million versus the three-analyst average estimate of $306.17 million.
View all Key Company Metrics for Moody's here>>>Shares of Moody's have returned -3.1% over the past month versus the Zacks S&P 500 composite's -1.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.