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Market Overview

Moody's Earnings Preview

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Moody's (NYSE:MCO) unveils its next round of earnings this Friday, February 12. Get prepared with Benzinga's ultimate preview for Moody's's Q4 earnings.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts predict Moody's will report earnings of $1.96 per share on revenue of $1.23 billion. In the same quarter last year, Moody's announced EPS of $2.0 on revenue of $1.23 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Friday, EPS would have fallen 2.0%. Sales would be down 0.24% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 2.10 2.19 2.20 1.93
EPS Actual 2.69 2.81 2.73 2
Revenue Estimate 1.21 B 1.24 B 1.20 B 1.21 B
Revenue Actual 1.36 B 1.44 B 1.29 B 1.23 B

Stock Performance

Over the past 52-week period, shares of Moody's have declined 0.47%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Moody's is scheduled to hold the call at 11:30:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings