Moody's Hits a New 52-Week High - Analyst Blog
May 15 2013 - 8:20AM
Zacks
Shares of Moody's Corp (MCO)
reached a new 52-week high of $66.70 on Tuesday, May 14, 2013. The
company has recently announced modest first-quarter results and
provided a positive FY13 outlook.
The closing price of Moody’s on May 14 was $66.68, representing
a phenomenal one-year return of about 76.03% and a year-to-date
return of about 28.8%. Average volume of shares traded over the
last three months stands at approximately 1807.7K.
Moody’s delivered an average positive earnings surprise of
10.72% over the past four quarters. This Zacks Rank #2 (Buy)
company has a market cap of $14.86 billion and a long-term expected
earnings growth rate of 13.9%.
First Quarter Highlights
Moody’s reported earnings (including litigation settlement
charge) of 83 cents which increased 9% on a year-over-year basis.
Revenues surged 13.0% year over year to $731.8 million primarily
driven by strong performance from both Moody’s Investors Service
(“MIS”) and Moody's Analytics (“MA”) division.
Guidance
Moody’s expects 2013 revenues to grow in the high single-digit
percent range. Moreover, MIS revenues for 2013 are expected to
increase in the high single-digit percent range. Moody’s also
expects MA revenues for 2013 to increase in the high single-digit
percent range.
Earnings for 2013 are expected to be in the range of $3.49 to
$3.59 per share. The Zacks Consensus Estimate is pegged at $3.58
per share.
Estimate Revision
In the last 30-day period, the Zacks Consensus Estimate moved up
a penny to 89 cents for the second quarter. During the period, one
upward revision and one subsequent downward revision were done by
analysts covering the stock.
Conclusion
Moody’s remains a solid franchise in rating debt instruments
based on its diversified credit research business model and
international growth opportunities. Moreover, the strength in new
domestic debt issuance and the improving clarity over regulatory
climate in Europe are positives.
Other Stocks to Consider
Other stocks that are worth considering include Dun
& Bradstreet Corp (DNB) and Factset Research
Systems Inc (FDS) both of which carry a Zacks Rank #3
(Hold). Euronet Worldwide (EEFT) has a Zacks Rank
#2 (Buy).
DUN &BRADST-NEW (DNB): Free Stock Analysis Report
EURONET WORLDWD (EEFT): Free Stock Analysis Report
FACTSET RESH (FDS): Free Stock Analysis Report
MOODYS CORP (MCO): Free Stock Analysis Report
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