Moody’s Corp Earnings: Two Straight Quarters of Profit Drops

S&P 500 (NYSE:SPY) component Moody’s Corporation (NYSE:MCO) reported its results for the fourth quarter. Moody’s provides credit ratings, credit and economic related research, data and analytical tools, risk management software, quantitative credit risk measures, credit portfolio management solutions, and training services.

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Moody’s Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Moody’s Corporation fell to $96.2 million (43 cents per share) vs. $137.4 million (58 cents per share) a year earlier. This is a decline of 30% from the year earlier quarter.

Revenue: Flat at $567.1 million.

Actual vs. Wall St. Expectations: Moody’s Corporation fell short of the mean analyst estimate of 49 cents per share. Analysts were expecting revenue of $567.3 million.

Quoting Management: “Moody’s achieved strong performance for full-year 2011, with growth in all lines of business at both Moody’s Investors Service and Moody’s Analytics despite volatile business conditions,” said Raymond McDaniel, Chairman and Chief Executive Officer of Moody’s. “For 2012, we anticipate revenue growth across most areas of our business and earnings per share in the range of $2.62 to $2.72.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 3.5% to $531.3 million in the third quarter. The figure rose 26.7% in the second quarter from the year earlier and climbed 21.1% in the first quarter from the year-ago quarter.

The company has now seen net income fall in each of the last two quarters. In the third quarter, net income fell 3.9% from the year earlier quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the third quarter, it topped the mark by 5 cents, and in the second quarter, it was ahead by 22 cents.

Looking Forward: The average estimate for the first quarter of the next fiscal year remains unchanged at 70 cents a share. For the fiscal year, the average estimate has moved up from $2.51 a share to $2.52 over the last thirty days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com