Core Insights - Moody's reported an 8% year-over-year increase in quarterly revenue and a 14% rise in adjusted earnings per share (EPS) to 3.83,exceedingWallStreetestimates[1]−However,thecompanyreviseditsfull−yearprofitguidancedownward,contributingtoa190.94 per share, yielding 0.9% [8] Outlook and Guidance - Moody's faces challenges from a rapidly evolving operating environment, particularly due to recent changes in U.S. trade policy that may disrupt the economy [9] - A slowdown in global debt issuances could impact the credit ratings business and limit growth opportunities, leading to a tempered full-year growth and earnings outlook [10] - The revenue growth estimate for 2025 was revised from high single digits to mid-single digits, and adjusted EPS guidance was lowered to a range of 13.25to14 [11] - Despite solid fundamentals, the stock's valuation premium is difficult to justify, trading at a P/E ratio of 38, above the five-year average of around 35 [12] Investment Perspective - Current shareholders may find enough strong points to hold, but investors on the sidelines may discover better value and upside potential elsewhere in the market [14]
Moody’s(MCO) The Motley Fool·2025-04-26 12:30