Q4 snap: margin a bit low but guidance healthy
MCO delivered a good adjusted EPS, beating consensus by 5% as very strong revenue growth (10% beat) was partially offset by disappointing margin expansion (down 50bp YoY and ~250bp below our expectations). Margins were hurt by the impact of the BvD acquisition and variable compensation costs. On the positive side, guidance for 2018 adj. EPS was set at $7.65-7.85, 3% above consensus of $7.53. Management anticipates mid-single-digit revenue growth in MIS and mid-twenties revenue growth in MA (organic revenue growth of low-single-digits). So overall, while the 4Q17 result was somewhat underwhelming (relative to peers), the positive outlook should reassure investors.Moody's is a provider of credit ratings and assessment services; credit, capital markets and economic research, data and analytical tools; software solutions that support financial risk management activities; quantitatively derived credit scores; learning solutions and certification services; and company information and business intelligence products. The company's segments are: Moody's Investors Service, which publishes credit ratings on a range of debt obligations and the entities that issue such obligations in markets worldwide; and Moody's Analytics, which provides financial intelligence and analytical tools to assist businesses in making decisions.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
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