Moody's (MCO, Financial) is set to take part in an industry and analyst conference call scheduled for May 13 at 1 p.m. The session will feature insights from North American High Grade & High Yield Power Analyst Kwan and Utilities & Midstream Analyst Tonet. Interested parties can tune in via the webcast link provided for real-time updates and analysis on sector trends and market outlooks.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for Moodys Corp (MCO, Financial) is $503.18 with a high estimate of $572.00 and a low estimate of $420.00. The average target implies an upside of 3.27% from the current price of $487.26. More detailed estimate data can be found on the Moodys Corp (MCO) Forecast page.
Based on the consensus recommendation from 26 brokerage firms, Moodys Corp's (MCO, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Moodys Corp (MCO, Financial) in one year is $489.21, suggesting a upside of 0.4% from the current price of $487.26. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Moodys Corp (MCO) Summary page.
MCO Key Business Developments
Release Date: April 22, 2025
- Revenue: $1.9 billion, up 8% year-over-year.
- Adjusted Operating Margin: 51.7%, up 100 basis points from the previous year.
- Adjusted Diluted EPS: $3.83, up 14% year-over-year.
- MIS Revenue: $1.1 billion, with 8% growth and an adjusted operating margin of 66%.
- Private Credit Deals: 143 deals, up from 69 in the first quarter of 2024.
- Moody's Analytics Revenue: $859 million, up 8%.
- Decision Solutions ARR Growth: 12%.
- Recurring Revenue: 96% of total MA revenue.
- Free Cash Flow: Expected to be in the range of $2.3 billion to $2.5 billion for the full year 2025.
- Share Repurchase Guidance: At least $1.3 billion for 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Moodys Corp (MCO, Financial) achieved a record $1.9 billion in first quarter 2025 revenue, marking an 8% year-over-year increase.
- The company reported an adjusted operating margin of 51.7%, up 100 basis points from the previous year.
- Adjusted diluted EPS grew by 14% to $3.83, showcasing the strength of the franchise.
- Private Credit was a significant contributor to growth, particularly in structured finance, with 143 Private Credit related deals in Q1 2025.
- Moody's Analytics saw ARR growth of 9%, led by Decision Solutions with a 12% increase, and recurring revenue now accounts for 96% of total MA revenue.
Negative Points
- The company has adjusted its guidance to account for a more conservative outlook due to market volatility and uncertainty.
- There is a noted slowdown in M&A activity, with expectations for 15% growth down from an initial 50% forecast.
- The Data & Information business experienced slower growth due to elevated attrition from US government contracts and adjustments to the ESG strategy.
- Moody's has widened and lowered its guidance range for the year, reflecting potential impacts from tariffs and trade tensions.
- The company anticipates MIS rated issuance to decrease in the low to high single-digit range for 2025, indicating a challenging issuance environment.
