Moody’s Earnings: Beats Estimates

S&P 500 (NYSE:SPY) component Moody’s Corporation (NYSE:MCO) reported net income above Wall Street’s expectations for the third 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 Corporation Earnings Cheat Sheet

Results: Net income for Moody’s Corporation rose to $183.9 million (81 cents per share) vs. $130.7 million (57 cents per share) in the same quarter a year earlier. This marks a rise of 40.7% from the year-earlier quarter.

Revenue: Rose 29.6% to $688.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Moody’s Corporation reported adjusted net income of 75 cents per share. By that measure, the company beat the mean estimate of 64 cents per share. It beat the average revenue estimate of $632.1 million.

Quoting Management: “Moody’s achieved double-digit revenue growth in all lines of businesses at Moody’s Investors Service in the third quarter, with particularly strong performance in corporate finance. Moody’s also had continued strong growth in all areas of Moody’s Analytics,” said Raymond McDaniel, President and Chief Executive Officer of Moody’s. “Based on third quarter performance, we are raising our full-year 2012 EPS guidance to a range of $2.95 to $3.05, or $2.89 to $2.99 excluding a legacy tax benefit.”

Key Stats:

Revenue has risen for the last four quarters. Revenue increased 5.9% to $640.8 million in the second quarter. The figure rose 12.1% in the first quarter from the year earlier and climbed 0.5% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now beaten analyst estimates for three quarters in a row. It beat the mark by 5 cents in the second quarter and by 7 cents in the first quarter.

Net income has increased 1.9% year-over-year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed 40.7% from the year-earlier quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 58 cents a share to 59 cents over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from $2.71 per to share to $2.76.

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

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