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New York-based Moody's Corporation (MCO) operates as an integrated risk assessment firm. With a market cap of $87.4 billion, the company provides credit ratings and related research, data and analytical tools, quantitative credit risk measures, risk scoring software, and credit portfolio management solutions and securities pricing software and valuation models. The credit rating giant is expected to announce its fiscal third-quarter earnings for 2025 before the market opens on Wednesday, Oct. 22.
Ahead of the event, analysts expect MCO to report a profit of $3.51 per share on a diluted basis, up 9.4% from $3.21 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect MCO to report EPS of $13.92, up 11.6% from $12.47 in fiscal 2024. Its EPS is expected to rise 12.4% year over year to $15.64 in fiscal 2026.
MCO stock has underperformed the S&P 500 Index’s ($SPX) 17.4% gains over the past 52 weeks, with shares up 4.1% during this period. Similarly, it underperformed the Financial Select Sector SPDR Fund’s (XLF) 18% gains over the same time frame.
On Jul. 23, MCO shares closed up more than 1% after reporting its Q2 results. Its revenue stood at $1.9 billion, up 4.5% year over year. The company’s adjusted EPS increased 8.5% from the prior-year quarter to $3.56.
Analysts’ consensus opinion on MCO stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 25 analysts covering the stock, 13 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” 10 give a “Hold,” and one recommends a “Strong Sell.” MCO’s average analyst price target is $542.19, indicating a potential upside of 10.6% from the current levels.
