Moody's Raises 2016 EPS Outlook

(RTTNews) - Moody's Corp. (MCO) said that it raised its GAAP earnings per share outlook for the full year ending December 31, 2016.

Full year 2016 GAAP earnings per share is currently expected to be in the range of $4.70 to $4.80, which now includes an anticipated non-cash foreign exchange gain of about $0.18 related to a subsidiary reorganization, offset in part by an approximate $0.04 restructuring charge associated with cost management initiatives. Previously, the company expected annual GAAP earnings per share to be toward the lower end of the $4.55 to $4.65 per share range.

Excluding items, the company now expects full year 2016 non-GAAP earnings per share of $4.55 to $4.65. The Company expects to record the foreign exchange gain in its fourth quarter results and the restructuring charge in its third quarter results. Analysts polled by Thomson Reuters expect the company to report earnings of $4.58 per share for 2016. Analysts' estimates typically exclude special items

"Increased issuance activity combined with a greater impact from our cost savings initiatives has resulted in a modestly improved outlook," said Raymond McDaniel, President and Chief Executive Officer of Moody's.

Moody's full year 2016 revenue is still expected to increase in the low-single-digit percent range.

Full year global MIS revenue is still expected to decrease in the low-single-digit-percent range, while US revenue is now expected to be approximately flat and public, project and infrastructure finance revenue is now expected to increase approximately 10%.

The effective tax rate is now expected to be 31% to 31.5%, including an approximate one percentage point favorable change due to the foreign exchange gain noted above which is not taxable.