Moody’s Earnings Cheat Sheet: Boosts Top-Line Growth 21%, Shares Jump

S&P 500 (NYSE:SPY) component Moody’s Corporation (NYSE:MCO) reported net income above Wall Street’s expectations for the first quarter. Moody’s Corpo. provides credit ratings, credit and economic related research, data and analytical tools, risk management software and quantitative credit risk measures, credit portfolio management solutions and training services.

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Moody’s Earnings Cheat Sheet for the First Quarter

Results: Net income for Moody’s Corporation rose to $155.5 million (67 cents/share) vs. $113.4 million (47 cents/share) in the same quarter a year earlier. A rise of 37.1% from the year earlier quarter.

Revenue: Rose 21.1% to $577.1 million YoY.

Actual vs. Wall St. Expectations: MCO beat the mean analyst estimate of 54 cents/share. Estimates ranged from 51 cents per share to 56 cents per share.

Quoting Management: “Moody’s first quarter results reflected strong corporate debt issuance and increased structured finance ratings activity, supporting growth at Moody’s Investors Service, and continued solid performance from Moody’s Analytics,” said Raymond McDaniel, Chairman and Chief Executive Officer of Moody’s.

“We are raising our full-year 2011 EPS guidance to a range of $2.22 to $2.32 based on strong first-quarter performance. Our expectations for market conditions for the remainder of the year are generally unchanged from our February guidance.”

Key Stats: The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 34.8% and in the third quarter of the last fiscal year, the figure rose 35.2%.

Competitors to Watch: Equifax Inc. (NYSE:EFX), CreditRiskMonitor.com, Inc. (CRMZ), McGraw-Hill (NYSE:MHP), Paychex (NASDAQ:PAYX), Automatic Data Processing (NASDAQ:ADP), Thomson Reuters (NYSE:TRI), EDGAR (NASDAQ:EDGR), FactSet Research (NYSE:FDS), ValuLine (NASDAQ:VALU), Envestnet (NYSE:ENV), Morningstar (NASDAQ:MORN) and The Dun & Bradstreet Corp. (NYSE:DNB).

Today’s Performance: Shares of MCO are trading at $39.38 as of April 27, 2011 at 9:48 AM ET, up 9.66% from the previous close.


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