Bookmark and Share

Moody’s Beats Q1 Estimates, Lifts Outlook on FY13 (MCO)

Credit rating agency, Moody’s Corporation (NYSE: MCO) reported on Friday that its fiscal first-quarter net income climbed 9%, driven by solid revenue growth in the U.S.

Moody’s also raised its full-year earnings guidance.

For the fiscal first quarter ended March 31, Moody’s reported net income of $188.4 million or 83 cents a share compared to a profit of $173.5 million or 76 cents a share, in the same quarter of last year.

Excluding onetime item (14 cents a share charge related to a settlement of a lawsuits), adjusted or non-GAAP earnings came at 97 cents a share.

Analysts polled by FactSet were expecting earnings of 85 cents a share.

Revenue for the period soared 13% to $731.8 million from $646.8 million, in the year-earlier quarter. The Street’s consensus estimate was of $729 million.

While revenue from the U.S. operations surged 18% to $406.1 million, revenue from international market, which accounts for about 35% of the entire revenue, rose 8% to $325.7 million.

Revenue from Moody’s Investors Service, a unit which rates credit rating of bonds issued by the governments and companies , increased 15% to $521.2 million and revenue from Moody’s Analytics, a unit which provides research and risk management services, climbed 9% to $210.6 million.

“Moody’s results in the first quarter of 2013 reflected strong operating performance for both Moody’s Investors Service and Moody`s Analytics,” said CEO Raymond McDaniel said in a statement.

Looking ahead at fiscal 2013, the rating agency now anticipates earnings in the range of $3.49 to $3.59 a share up from its original guidance of $3.45 to $3.55 a share. Revenue for the period is expected to grow by higher single digit percentage. Analysts’ consensus estimate was for earnings of $3.43 a share.

However, the Company is also expecting operating expenses to increase  by mid-single-digit percentage range.

Meanwhile, Moody’s Corp also declared a quarterly dividend of 20 cents a share, payable on June 10 to shareholders of record on May 20.

MCO shares climbed about 2.50% in early trade.

 

 


Leave a Reply

  

  

  

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>


-------------------------------------------------------------------------------------------------------------------------
All stories in DailyStocks.com are for informational purposes only. This is NOT a stock recommendation. This DailyStocks.com story is a daily light analysis featuring a stock with insider buying. With some caveats, insiders purchase a stock because they think the stock is going up. There are other factors to consider such as size of the transaction relative to their compensation and net worth. Sometimes, insiders might be propping a stock price up for future financing. Sometimes, the amount of insider buying are misread or misreported. Each month, DailyStocks releases a a summary of the stocks with insider buying. Sign up for the free monthly newsletter at DailyStocks.com . About Dailystocks.com: DailyStocks.com is the place where you can find stories about stocks with insider buying, where you can educate yourself about stock market investing, and where you can perform the stock search engine analysis – you enter a stock symbol, and you get a resulting page of stock ticker indexed links so that you do not have to type the stock symbol each time.