Moody's Prepares To Report Third-Quarter Results as Analysts Expect Slower Revenue Growth
Moody's Corporation (MCO) is scheduled to release its third-quarter earnings on Wednesday before the market opens. Wall Street expects revenue growth to slow to 3.3% year over year, down from the 10.7% increase recorded in the same period last year. The upcoming announcement follows a strong second quarter in which the credit rating agency generated $2.19 billion in revenue—a 15.1% annual gain—while topping consensus estimates for revenue, EBITDA, and earnings per share.
Analyst expectations for Moody's have remained consistent, with consensus estimates holding steady over the last 30 days. The company maintains a strong track record of meeting revenue targets, rarely falling short of Wall Street estimates. Ahead of the release, analysts maintain an average price target of $551.38, compared to the recent trading price around $481.30.
Results from capital markets peers present a mixed backdrop for the sector. FactSet reported a 6.3% revenue gain that beat estimates and boosted its stock 6.8%, while Goldman Sachs delivered 23% revenue growth that beat expectations but saw its shares decline 1.7%. Despite broader sector headwinds that pushed capital markets peers down 3.9% on average over the past month, Moody's stock has gained 2.9% during the same window.
Key points
- Moody's Corporation (MCO) will release its third-quarter financial results on Wednesday morning before the stock market opens.
- Wall Street forecasts quarterly revenue to increase 3.3% year over year, a deceleration from the 10.7% growth posted in Q3 last year.
- Analysts have largely held their earnings projections steady over the past 30 days, reflecting confidence in the company's trajectory.
- Shares of Moody's are up 2.9% over the past month, outperforming capital markets peers, which dropped 3.9% on average.
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When does Moody's report Q3 earnings?
Moody's Corporation will report its third-quarter financial results on Wednesday before the market opens.
What are revenue expectations for Moody's in Q3?
Wall Street expects Moody's third-quarter revenue to increase by 3.3% year over year, which represents a slowdown from the 10.7% growth achieved in the prior-year period.