Moody’s Corporation (NYSE:MCO) will release earnings for its fourth quarter before the opening bell on Wednesday, Feb. 18.Analysts expect the New York-based company to report quarterly earnings at $3.44 per share. That's up from $2.62 per share in the year-ago period. The consensus estimate for Moody’s quarterly revenue is $1.87 billion (it reported $1.67 billion last year), according to Benzinga Pro.On Monday, Moody’s announced that it has established a regional headquarters (RHQ) in Riyadh, Saudi Arabia.S ...

Core Viewpoint - The article reveals the portfolio adjustments made by Berkshire Hathaway during Warren Buffett's last quarter as CEO, highlighting a shift in holdings with reductions in technology stocks and increases in energy, consumer, and financial sectors [2][4]. Group 1: Overall Portfolio Changes - As of the end of Q4 2025, Berkshire's total portfolio size increased to $274 billion from $267 billion in the previous quarter, with the top ten holdings accounting for 88.26% of the portfolio [2]. - The top ten holdings remained unchanged in terms of companies, but there were slight adjustments in their rankings [2]. Group 2: Major Stock Adjustments - Berkshire reduced its stake in Apple by over 10.29 million shares, a decrease of 4.32%, marking the third consecutive quarter of reduction, with a market value decline of approximately $2.8 billion [4][7]. - A significant reduction in Amazon shares was noted, with a 77.24% decrease in holdings, dropping its portfolio share from 0.82% to 0.19%, leaving nearly 2.3 million shares [5]. - The stake in Bank of America was also reduced, with nearly 50.8 million shares sold, resulting in an 8.94% decrease in holdings [6]. Group 3: New Investments and Increases - Berkshire initiated a new position in The New York Times, purchasing 5.0657 million shares valued at over $350 million, ranking it 30th in the portfolio [8]. - The company increased its holdings in Chevron by over 8.09 million shares, a 6.63% increase, and in Chubb Limited by nearly 2.92 million shares, a 9.31% increase [9]. - Additionally, there was a 12.34% increase in holdings of Domino's Pizza, raising its market value to $1.4 billion [9]. Group 4: Stable Holdings - Coca-Cola and Kraft Heinz holdings remained unchanged, with Coca-Cola valued at $27.96 billion, maintaining its position as the fourth-largest holding [11]. - Berkshire is the largest shareholder of Kraft Heinz, holding approximately 27.5% of the company, which is undergoing a split into two independent publicly traded companies [11].

Core Viewpoint - Moody's Corporation is a significant entity in the financial services sector, known for its credit ratings and risk management products, which are vital for global investors and businesses [1] Group 1: Price Target Trends - The consensus price target for Moody's has decreased from $539.53 to $532 over the past year, indicating a downward trend in analysts' expectations [2][5] - This decline in price targets may be influenced by various factors, including market conditions and company performance [2] Group 2: Earnings Performance - Moody's has a history of delivering impressive earnings surprises, suggesting strong performance despite the declining price targets [3] - The company is expected to report robust fourth-quarter results, driven by global loan and bond issuance, benefiting its Moody's Investors Service segment [3][5] - There is sustained demand for Moody's Analytics services, contributing to the anticipated growth in earnings [3] Group 3: Strategic Outlook - The upcoming earnings announcement is expected to show growth, with Wall Street anticipating positive results [4] - Moody's strategic positioning and strong performance history indicate it may continue its positive trend, even with rising acquisition costs [4]

Core Insights - Moody's Corporation (MCO) has established a regional headquarters in Riyadh, Saudi Arabia, to enhance its presence in the Middle East and align with Saudi Arabia's Vision 2030 [1][2] - The appointment of Mahmoud Totonji as general manager for the Riyadh headquarters aims to strengthen Moody's partnerships with local institutions and improve access to market intelligence [2][7] - The expansion into the Middle East is part of a broader strategy to diversify revenue sources beyond Western markets and enhance competitive positioning [3][7] Expansion Strategy - Moody's has a history of global expansion through acquisitions and partnerships, including plans to increase its stake in Middle East Rating & Investors Service and acquiring ICR Chile to bolster its Latin American presence [4][5] - The acquisition of Global Credit Rating Company Limited in 2024 and SCRiesgo in 2023 further solidifies Moody's reach in Africa and Central America, respectively [5] Market Performance - Over the past six months, Moody's shares have decreased by 8.7%, while the industry has seen a decline of 10.8% [6]

Core Viewpoint - Moody's Corporation has established a regional headquarters in Riyadh, Saudi Arabia, demonstrating its commitment to support the development of the Kingdom's capital markets and economy [1] Group 1 - The new regional headquarters aligns with Saudi Arabia's Vision 2030 initiative, highlighting the country's dynamism and growth [1] - This expansion marks an increase in Moody's presence in Saudi Arabia, where the company first opened an office in 2018 [1]

Core Insights - Moody's (MCO) is expected to report its fourth-quarter and full-year 2025 results on February 18, with a focus on revenue growth across its divisions [1][9]. Corporate Finance - The Corporate Finance line, the largest revenue contributor within the Moody's Investors Service (MIS) division, is projected to see a revenue increase of 22.7% year-over-year, with estimates at $467.4 million, driven by healthy bond and loan issuance volumes [3][9]. - Global bond issuance activity remained robust in the fourth quarter, despite seasonal slowdowns in December, supporting issuance volumes [2]. Financial Institutions and Other Business Lines - The Financial Institutions business line is estimated to generate revenues of $173.4 million, reflecting a year-over-year increase of 3.8% [4]. - Public, Project, and Infrastructure Finance revenues are expected to reach $139.1 million, indicating a growth of 20.1% [4]. Structured Finance - Structured Finance revenues are anticipated to rise to $149.8 million, suggesting an 8.5% increase, supported by strong issuance volumes in collateral debt obligations and asset-backed securities [5]. Moody's Analytics Division - The Moody's Analytics (MA) division is projected to report revenues of $945 million, representing a 9.1% growth year-over-year, driven by rising demand for analytics and efforts to enhance profitability [6][7]. Overall Revenue and Earnings Expectations - The total revenue for the MIS division is expected to be $993.9 million, indicating a 15.8% year-over-year rise [5][9]. - The consensus estimate for earnings is pegged at $3.46, reflecting a 32.1% increase from the previous year [11]. 2025 Outlook - Moody's anticipates adjusted earnings per share between $14.50 and $14.75, with GAAP earnings projected at $13.15 to $13.40 per share, and expects revenue growth in the high-single-digit percent range for both MIS and MA segments [13].

Group 1 - Moody's has confirmed Estonia's A1 rating and maintained a stable outlook [1]

Core Insights - The Dow Jones Industrial Average (DJIA) recently surpassed the 50,000 mark for the first time, indicating a strong bull market led by AI, although it experienced a subsequent decline [1] - Investors are shifting from high-growth AI stocks, referred to as the "Magnificent Seven," to value stocks that generate cash flow, amid concerns over capital expenditures (CapEx) [1] - Caterpillar, a significant component of the Dow, has seen a 33% year-to-date gain, contributing to the index's outperformance [1] Market Dynamics - The current market environment suggests a rotation away from AI disruptors and software companies towards more stable, cash-generating assets [1] - The Dow's relative strength is notable, as it has outperformed the S&P 500 and Nasdaq 100, indicating a potential shift in investment strategy [1] - Concerns over CapEx and the performance of major tech companies have led to a cooling off period for high-growth stocks, prompting investors to consider diversifying their portfolios [1] Company-Specific Insights - Moody's shares have declined over 23% recently due to fears that agentic AI could undermine its competitive advantages, despite its strong data moat and regulatory barriers that may protect its market position [1] - The article suggests that the recent drop in Moody's stock presents an opportunity for investors looking to capitalize on the broader bull market and AI-driven productivity gains [1] - Goldman Sachs has highlighted the potential benefits for old-economy stocks from AI adoption, indicating a broader market trend towards undervalued companies that can leverage AI technologies [1]

Core Insights - Moody's financial performance is expected to be a key catalyst, particularly if rating revenues fall short due to delays in corporate refinancing, which may lead to stock price volatility [2] - The private credit market is projected to exceed $2 trillion by 2026, and a systemic default wave could impact Moody's analytical business valuation, despite Moody's not directly participating in ratings [3] - Wall Street has high expectations for Moody's, and any major institution downgrading its rating to "sell" could attract market attention [4] - The collaboration between Moody's and Microsoft on the Moody's Dash system requires monitoring for cost control and revenue conversion, which involves the effectiveness of cloud computing and talent investment [5] - By 2026, more regions may mandate the use of local rating agencies, and the ESG scoring business is facing regulatory scrutiny, which could affect Moody's global operations [6]

Group 1 - Moody's stock price declined by 9% [1] - MSCI experienced a drop of 4% [1] - FactSet's stock fell by 4.8% [1]