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Moody's (MCO) Q2 Earnings Preview: What You Should Know Beyond the Headline Estimates

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Wall Street analysts expect Moody's (MCO - Free Report) to post quarterly earnings of $4.23 per share in its upcoming report, which indicates a year-over-year increase of 18.8%. Revenues are expected to be $2.09 billion, up 10% from the year-ago quarter.

The consensus EPS estimate for the quarter has undergone a downward revision of 0.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

That said, let's delve into the average estimates of some Moody's metrics that Wall Street analysts commonly model and monitor.

Analysts forecast 'Revenue- Total external customers- Moody's Analytics' to reach $929.43 million. The estimate indicates a change of +4.7% from the prior-year quarter.

The consensus estimate for 'Revenue- Total external customers- Moody's Investor Services' stands at $1.15 billion. The estimate points to a change of +14% from the year-ago quarter.

Analysts' assessment points toward 'Revenue- Moody's Analytics- Data and Information' reaching $241.11 million. The estimate indicates a year-over-year change of +6.7%.

It is projected by analysts that the 'Revenue- Moody's Analytics- Research and Insights' will reach $264.16 million. The estimate suggests a change of +6.1% year over year.

The average prediction of analysts places 'Revenue- Moody's Analytics- Decision Solutions' at $427.30 million. The estimate suggests a change of +3.5% year over year.

Analysts expect 'Revenue- Moody's Investor Services- Recurring' to come in at $369.50 million. The estimate suggests a change of +6.5% year over year.

Analysts predict that the 'Revenue- Moody's Investor Services- Transaction' will reach $782.03 million. The estimate suggests a change of +18% year over year.

The combined assessment of analysts suggests that 'Revenue- Moody's Investor Services- Ratings- Corporate finance (CFG)- High-yield' will likely reach $100.63 million. The estimate suggests a change of +18.4% year over year.

The consensus among analysts is that 'Revenue- Moody's Investor Services- Ratings- Corporate finance (CFG)- Investment-grade' will reach $184.30 million. The estimate points to a change of +29.8% from the year-ago quarter.

According to the collective judgment of analysts, 'Revenue- Moody's Investor Services- Ratings- Corporate finance (CFG)- Other accounts' should come in at $194.05 million. The estimate points to a change of +3.8% from the year-ago quarter.

Based on the collective assessment of analysts, 'Revenue- Moody's Investor Services- Ratings- Structured finance (SFG)- Asset-backed securities' should arrive at $40.00 million. The estimate indicates a change of +14.3% from the prior-year quarter.

The collective assessment of analysts points to an estimated 'Revenue- Moody's Investor Services- Ratings- Structured finance (SFG)- RMBS' of $33.40 million. The estimate indicates a year-over-year change of +15.2%.

View all Key Company Metrics for Moody's here>>>

Over the past month, Moody's shares have recorded returns of +13.4% versus the Zacks S&P 500 composite's +0.6% change. Based on its Zacks Rank #2 (Buy), MCO will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

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