Moody's Q4 Results Beat Estimates

(RTTNews) - Credit ratings agency Moody's Corp. (MCO) Friday said its fourth-quarter profit increased from last year, with significant growth in revenue in Moody's Investors Service as well as Moody's Analytics. Both earnings and revenues topped estimates, and the company guided full-year profit in line with view.

Net income attributable to the company increased to $236.3 million or $1.12 per share from $206.7 million or $0.94 per share in the prior-year quarter.

On average, eleven analysts polled by Thomson Reuters expected the company to report earnings of $0.95 per share for the quarter. Analysts' estimates typically exclude special items.

Operating income climbed 11 percent to $344.7 million, while operating expenses also were 14 percent higher at $532.8 million.

Revenue for the quarter increased 13 percent to $877.5 million from $779.2 million in the year-ago quarter. Analysts had a consensus revenue estimate of $850.29 million.

Foreign currency translation hurt revenue by 3 percent. Revenue generated outside the U.S. constituted 45 percent of total revenue, compared to 46 percent during the corresponding period last year.

U.S. revenue climbed 15 percent to $478.7 million, while non-U.S. revenue advanced 10 percent to $398.8 million.

Global revenue for Moody's Investors Service grew 7 percent to $565.1 million. Moody's acquired a controlling interest in ICRA Ltd. in the second-quarter, and revenue included results from ICRA.

Moody's Analytics reported revenue of $312.4 million, up 23 percent from the fourth quarter of 2013. Foreign currency translation unfavorably impacted the segment's revenue by 3 percent. Excluding revenue from acquisitions made in 2014, revenue jumped 18 percent in the quarter.

Looking ahead to fiscal 2015, the company expects earnings in the range of $4.55 to $4.65 per share, and revenue growth in the mid-single-digit percent range. The Street is currently looking for full-year 2015 earnings of $4.58 per share on revenue of $3.54 billion.

Thursday, the stock closed at $93.27, up 1.1 percent.