Moody's (NYS: MCO) is expected to report Q2 earnings on July 24. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Moody's revenues will grow 12.7% and EPS will increase 15.8%.
The average estimate for revenue is $722.2 million. On the bottom line, the average EPS estimate is $0.88.
Last quarter, Moody's notched revenue of $731.8 million. GAAP reported sales were 13% higher than the prior-year quarter's $646.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.97. GAAP EPS of $0.83 for Q1 were 9.2% higher than the prior-year quarter's $0.76 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 72.6%, 130 basis points better than the prior-year quarter. Operating margin was 38.9%, 270 basis points worse than the prior-year quarter. Net margin was 25.7%, 110 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $2.94 billion. The average EPS estimate is $3.52.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 845 members out of 995 rating the stock outperform, and 150 members rating it underperform. Among 362 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 321 give Moody's a green thumbs-up, and 41 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Moody's is hold, with an average price target of $51.50.
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The article Will These Numbers from Moody's Be Good Enough for You? originally appeared on Fool.com.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Moody's. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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