Moody's (MCO) Q3 Earnings and Revenues Surpass Estimates

Core Insights - Moody's reported quarterly earnings of $3.92 per share, exceeding the Zacks Consensus Estimate of $3.7 per share, and showing an increase from $3.21 per share a year ago, representing an earnings surprise of +5.95% [1] - The company achieved revenues of $2.01 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.15% and up from $1.81 billion year-over-year [2] - Moody's has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Financial Performance - The earnings surprise of +5.95% for the recent quarter follows a previous surprise of +3.49% when actual earnings were $3.56 per share against an expectation of $3.44 [1] - Over the last four quarters, Moody's has topped consensus revenue estimates three times, showcasing its ability to outperform market expectations [2] Stock Performance and Outlook - Moody's shares have increased by approximately 2.4% since the beginning of the year, in contrast to the S&P 500's gain of 14.5%, indicating underperformance relative to the broader market [3] - The company's earnings outlook is crucial for future stock movements, with current consensus EPS estimates at $3.03 for the coming quarter and $14.09 for the current fiscal year [7] Industry Context - The Financial - Miscellaneous Services industry, to which Moody's belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]