Zacks
0
All posts from Zacks
Zacks in Our Research. Your Success.,

Moody's (MCO) Posts Weaker Than Expected Q1 Earnings

Moody’s Corporation MCO is a leading provider of credit ratings, research, data & analytical tools, software solutions & related risk management services, quantitative credit assessment services, credit training services and credit process software to banks and other financial institutions. Moody's reports its businesses under two operating divisions – Moody's Investors Service (MIS), which includes all the rating agency businesses, and Moody's Analytics (MA), which includes other non-rating commercial activities.

Moody's Investors Service provides credit ratings and research covering debt instruments and securities. Revenues from MIS comprises ratings revenues from Structured Finance; Corporate Finance; Financial Institutions and Sovereign Risk; and Public, Project and Infrastructure Finance. Moody's Analytics offers solutions related to financial and risk management activities of institutions.

Zacks Rank: Currently, MCO has a Zacks Rank#4 (Sell) but that could change following its first quarter 2016 earnings report which has just released.

We have highlighted some of the key details from the just-released announcement below:

Earnings: MCO reported earnings of 93 cents per share that missed the Zacks Consensus Estimate of $1.07 and declined 16.2% year over year. The company tweaked its 2016 guidance because of slowdown in debt issuance activity. The company now expects earnings in the range of $4.55 to $4.65 as against $4.75 to $4.85 per share projected earlier.

Revenue: Revenues of $816.1 million missed Zacks Consensus Estimate of $853 million and fell 6% year over year. For full year, revenues are now expected to be up in low single digits as against mid single digits projected earlier.

Key Stats: In the quarter, the company reported adjusted operating margin was 40.9%, compared with 46.2% reported in the year ago period.

Check back later for our full write up on this MCO earnings report later!

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
MOODYS CORP (MCO): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research