Moody's (MCO) Reports Next Week: Wall Street Expects Earnings Growth

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Moody's, with a focus on how actual results compare to estimates, which could significantly impact stock price [1][2]. Earnings Expectations - Moody's is expected to report earnings of $3.57 per share, reflecting a +5.9$1.89 billion, up 5.7% from the previous year [3]. - The earnings report is scheduled for April 22, 2025, and could lead to stock price movements depending on whether the results exceed or fall short of expectations [2]. Estimate Revisions - The consensus EPS estimate has been revised 0.84% higher in the last 30 days, indicating a collective reassessment by analysts [4]. - The Most Accurate Estimate for Moody's is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.38%, suggesting a bearish outlook from analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with a positive ESP being a strong indicator of an earnings beat [6][8]. - Moody's current Zacks Rank is 2 (Buy), but the negative Earnings ESP complicates predictions of an earnings beat [11]. Historical Performance - Moody's has consistently beaten consensus EPS estimates in the last four quarters, with a recent surprise of +0.77% when it reported earnings of $2.62 per share against an expectation of$2.60 [12][13]. Industry Comparison - American Express, another player in the financial services sector, is expected to report earnings of $3.46 per share, a +3.9$17 billion, up 7.6% [17]. - The consensus EPS estimate for American Express has been revised 0.2% lower, resulting in an Earnings ESP of -0.05%, making it difficult to predict an earnings beat [18].