Moodys Corp
MCO: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$363.00 | Vrxt | Qhrhxcthsb |
Moody’s Earnings: Ratings Segment Outshines and Guidance Raised but Growth Likely to Slow
Wide-moat Moody's reported a strong quarter, with the ratings segment driving outsize profit growth. Moody's revenue grew 22%, with 36% growth in ratings and 8% constant currency growth in the more stable Analytics segment. Ratings growth was broad-based across different categories. As we tweak our model, we are increasing our fair value estimate by 5% to $385 to account for better near-term revenue expectations in ratings and time value of money.