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Moody's (MCO) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

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Moody's (MCO - Free Report) reported $1.48 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 14.7%. EPS of $2.19 for the same period compares to $1.60 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.49 billion, representing a surprise of -0.66%. The company delivered an EPS surprise of -6.41%, with the consensus EPS estimate being $2.34.

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: $796 million versus the five-analyst average estimate of $796.64 million. The reported number represents a year-over-year change of +11.5%.
  • Revenue- Total external customers- Moody's investor services: $684 million versus the five-analyst average estimate of $686.62 million. The reported number represents a year-over-year change of +18.8%.
  • Revenue- Moody's Analytics- Data and Information: $205 million compared to the $204.34 million average estimate based on four analysts.
  • Revenue- Moody's Analytics- Decision Solutions: $361 million compared to the $369.67 million average estimate based on four analysts.
  • Revenue- Moody's Analytics- Research and Insights: $230 million compared to the $223.06 million average estimate based on four analysts.
  • Revenue- Moody's investor services- Public, project and infrastructure finance: $105 million versus $115.29 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +11.7% change.
  • Revenue- Moody's Analytics: $799 million versus $799.71 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +11.4% change.
  • Revenue- Moody's investor services: $732 million compared to the $731.44 million average estimate based on three analysts. The reported number represents a change of +17.9% year over year.
  • Revenue- Moody's investor services- Financial institutions: $132 million versus $123.18 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +7.3% change.
  • Revenue- Moody's investor services- Structured finance: $102 million versus the three-analyst average estimate of $108.14 million. The reported number represents a year-over-year change of +8.5%.
  • Revenue- Moody's investor services- Corporate finance: $337 million compared to the $321.95 million average estimate based on three analysts. The reported number represents a change of +33.2% year over year.
  • Revenue- Moody's Analytics- Intersegment revenue: $3 million versus $3.30 million estimated by three analysts on average.
View all Key Company Metrics for Moody's here>>>

Shares of Moody's have returned +5.6% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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