Have you been eager to see how Moody's CorporationMCO , performed in Q4 in comparison with the market expectations? Let's quickly scan through the key facts from this NY-based credit rating giant's earnings release this morning:
An Earnings Beat
Moody's reported adjusted earnings per share of $1.23, beating the Zacks Consensus Estimate of $1.12.
Results were primarily aided by increased revenues.
How Was the Estimate Revision Trend?
You should note that the earnings estimate for Moody's depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate remained unchanged at $1.12 over the last 7days.
Moody's has a decent earnings surprise history.
Moody's Corporation Price and EPS Surprise
Overall, the company surpassed the Zacks Consensus Estimate by an average of 2.1% in the trailing four quarters.
Revenue Came in Higher than Expected
Moody's reported revenues of $942.1 million, beating Zacks Consensus Estimate of $911.0 million. Also, revenues grew 9% year over year.
Including a settlement charge and certain other non-recurring items, Moody's recorded a net loss of $428.6 million in the fourth-quarter 2016, compared to net income of $217.9 million in the prior-year quarter
As of Dec 31, 2016, Moody's had total cash, cash equivalents and short-term investments of $2.2 billion, almost stable with prior year end.
In 2016, Moody's returned $1 billion to shareholders.
The company expects 2017 EPS in the range of $5.15-$5.30. The guidance includes an estimated benefit of 15 cents from an accounting change tied with equity compensation.
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Moody's. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. Now it all depends on what sense the just-released report makes to the analysts.
Check back later for our full write up on this Moody's earnings report!
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