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Moody's (MCO) Beats on Q2 Earnings & Revenue Estimates

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Have you been eager to see how Moody's Corporation (MCO - Free Report) , performed in Q2 in comparison with the market expectations? Let’s quickly scan through the key facts from this NY-based credit rating giant’s earnings release this morning:

An Earnings Beat

Moody’s reported adjusted earnings of $1.51 per share, which beat the Zacks Consensus Estimate of $1.33.

Results were primarily driven by a rise in revenues.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for Moody’s depicted bullish stance prior to the earnings release. The Zacks Consensus Estimate rose nearly 1% over the last 30 days.

Further, Moody’s has a decent earnings surprise history.

Moody's Corporation Price and EPS Surprise

 

Moody's Corporation Price and EPS Surprise | Moody's Corporation Quote

Overall, the company surpassed the Zacks Consensus Estimate by an average of 11.7% in the trailing four quarters.

Revenue Came in Higher than Expected

Moody’s reported revenues of $1 billion, beating Zacks Consensus Estimate of $943.7 million. Also, revenues grew 8% year over year.

Key Takeaways

After taking into considering unrealized gain on a foreign currency collar to economically hedge the Bureau van Dijk euro-denominated purchase price and of acquisition-related costs, Moody’s net income was $313.6 million or $1.61 per share.

As of Jun 30, 2017, Moody’s had total cash, cash equivalents and short-term investments of $3.3 billion.

In the reported quarter, Moody’s returned $152.1 million to shareholders.

Driven by impressive first half 2017 results, Moody’s revised its earnings outlook. The company now expects adjusted earnings in the range of $5.35 to $5.50 per share.

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (Buy) for Moody’s. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. Now it all depends on what sense the just-released report makes to the analysts.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Check back later for our full write up on this Moody’s earnings report!

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