Moody’s says its revenue gained 4.6% in the fiscal fourth quarter

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in his free… read more.
on Feb 12, 2021
  • Moody’s says its revenue gained 4.6% in the fiscal fourth quarter.
  • The U.S. company's net income comes in at £227.17 million in Q4.
  • Moody's Corp forecasts up to £7.74 of adjusted EPS in fiscal 2021.

Moody’s Corp. (NYSE: MCO) said on Friday that its profit in the fiscal fourth quarter came in lower than expected. Its revenue, however, topped experts’ forecast in Q4. The risk assessment company gave upbeat guidance for the full year on Friday.

Moody’s shares opened more than 1% down on Friday but gained roughly 3% in the next hour. The stock now has a per-share price of £202.65. The price action should come in handy if you are interested in investing in the stock market.

Moody’s Q4 financial results versus analysts’ estimates

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Moody’s said that its net income in the fourth quarter printed at £227.17 million that translates to £1.20 per share. The U.S. firm had reported a higher £259.72 million of net income in the same quarter last year or £1.36 per share.  

Adjusted for one-time items, the bond credit rating business earned £1.38 per share or 5% lower than last year. Moody’s valued its revenue in Q4 at £930 million that represents a 4.6% year over year increase.

According to FactSet, experts had forecast the company to post £880 million of revenue in the recent quarter. Their estimate for adjusted per-share earnings stood at a higher £1.41 per share. In separate news from the United States, Newell Brands said its revenue climbed by 2.5% in the fiscal fourth quarter.

Other prominent figures in Moody’s earnings report

Other prominent figures in Moody’s earnings report on Friday included a 2% annualised growth in MIS revenue to £531.75 million versus a lower £497.38 million. Moody’s Analytics revenue registered at £401.52 million or 8% higher than last year. FactSet Consensus for revenue from this segment stood at £391.03 million.

For fiscal 2021, Moody’s now forecasts its adjusted per-share earnings to fall in the range of £7.45 to £7.74. Analysts, on the other hand, are calling for £7.48 of full-year adjusted EPS. The New York-based company expects roughly 5% of growth in full-year revenue versus the FactSet Consensus of close to 1%.

Moody’s report comes a day after the American online travel shopping company, Expedia Group Inc., published weaker than expected earnings report for the fiscal fourth quarter. Moody’s performed fairly upbeat in the stock market last year with an annual gain of close to 20%. At the time of writing, it is valued at £38 billion and has a price to earnings ratio of 29.09.

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