Moody’s (MCO) Offers Upbeat Earnings Guidance for 2021

Moody’s Corp. (NYSE:MCO) traces its history back to 1900 when Moody’s Manual of Industrial and Miscellaneous Securities was first published by the company’s founder John Moody. The manual had general information and stats related to the stocks and bonds of certain companies, financial institutions, and government agencies. Today, Moody’s specializes in providing economic analysis and risk management services to clients. Its ratings for stocks, bonds, and government entities are closely watched by investors around the world.

The New York-based risk assessment company recently reported mixed financial results for the fourth quarter. It reported earnings of $314 million, or $1.66 per share for the three months ended Dec. 31, down from $1.88 per share in the comparable period of 2019. On an adjusted basis, profit fell 5 percent to $1.91 per share, missing the consensus forecast of $1.95 per share.

Revenue rose 4.6 percent on a year-over-year basis to $1.29 billion, ahead of analysts’ average estimate of $1.22 billion.

If we look at the performance of key segments, revenue from the Moody’s Investors Service (MIS) segment rose 2 percent to $735 million, beating the consensus forecast of $687.5 million. Comparatively, revenue at Moody’s Analytics jumped 8 percent to $555 million, as compared to $540.5 million in revenue forecasted by analysts.

Moody’s also issued an upbeat earnings outlook for 2021. It expects to report adjusted earnings in the range of $10.30 per share to $10.70 per share for the current fiscal year, as compared to the consensus forecast of $10.34 per share.

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Speaking on Moody’s growth prospects, CEO Robert Fauber said in a statement, “As managing risk becomes more complex, the demand for our insights and solutions has never been greater. In 2021, we will help our customers navigate the changing environment by continuing to enhance our products, bringing new capabilities to the market and building on the strengths of our core businesses. We project 2021 revenue growth in the mid-single-digit percent range with strong growth in Moody’s Analytics offsetting expectations for a modest decline in global debt issuance.”

Moody’s (MCO) shares didn’t gain any value in the previous trading session despite offering positive financial outlook.