Moody’s (MCO) Stock Down Despite Q2 Earnings Beat

Moody’s (MCO) stock is dropping on Friday morning even though the ratings service reported better-than-expected results for the 2016 second quarter.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Moody's (MCO) - Get Report are retreating 1.29% to $102.96 on Friday morning even though the company's earnings and revenue topped analysts' expectations for the 2016 second quarter.

Before today's opening bell, the New York-based ratings service posted earnings of $1.30 per share, above analysts' estimates of $1.28 per share.

Revenue increased 1% to $928.9 million from last year and surpassed Wall Street's forecasts of $909.1 million.

But global revenue for Moody's Investors Service declined 2% to $625.6 million year-over-year. Results were impacted by an 8% drop in revenue from its global structured finance ratings business, Bloomberg noted.

For 2016, Moody's sees earnings per share between $4.55 and $4.65. The company expects earnings at the lower end of the range, citing heightened market uncertainty.

Analysts are looking for earnings of $4.58 per share for the full year.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.

This is driven by some important positives, which should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks covered.

Among the primary strengths of the company is its expanding profit margins over time. 

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

You can view the full analysis from the report here: MCO

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