Credit ratings agency Moody's Corp. (MCO) reported Friday a profit for the first quarter that increased 13 percent from last year, reflecting double-digit revenue growth amid growth across both its operating segments. Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also raised its earnings forecast for the full-year 2013, while maintaining annual revenue growth guidance.
"Moody's results in the first quarter of 2013 reflected strong operating performance for both Moody's Investors Service and Moody's Analytics. Earnings per share growth of 9% for the quarter reflects higher than anticipated expenses associated with our resolution of two protracted litigation matters," President and CEO Raymond McDaniel said in a statement.
The New York-based company reported net income of $188.4 million or $0.83 per share for the first quarter, higher than $173.5 million or $0.76 per share in the prior-year quarter.
The results for the latest quarter includes a litigation settlement charge of $0.14 related to the resolution of the Abu Dhabi and Rhinebridge litigation matters. Excluding the charge, adjusted earnings per share for the latest quarter would have been $0.97.
On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.85 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter grew 13 percent to $731.8 million from $646.8 million in the same quarter last year, and topped seven Wall Street analysts' consensus estimate of $718.01 million.
The company's U.S. revenue for the quarter grew 18 percent to $406.1 million, and revenue generated outside the U.S. rose 8 percent to $325.7 million from the year-ago quarter.
Total Moody's Investors Service or MIS global revenues increased 15 percent to $521.2 million from last year, with corporate finance revenue improved 29 percent, financial institutions revenue growing 10 percent as well as public, project and infrastructure finance revenue increasing 5 percent, while structured finance revenue edged down 1 percent.
Total global revenue for Moody's Analytics rose 9 percent to $210.6 million from the year-ago quarter, with research, data and analytics revenue increasing 8 percent, enterprise risk solutions revenue rising 10 percent, and professional services revenue growing 7 percent.
The company noted that the Board of Directors declared on April 16 a regular quarterly dividend of $0.20 per share, payable on June 10 to stockholders of record at the close of business on May 20, 2013.
Looking ahead to fiscal 2013, Moody's raised its earnings guidance to a range of $3.49 to $3.59 per share from the prior forecast of $3.45 to $3.55 per share, while maintaining revenue growth guidance in the high-single-digit percent range.
Street is currently looking for full-year 2013 earnings of $3.51 per share on annual revenues of $2.96 billion.
In Friday's regular trading session, MCO is currently trading at $62.06, up $1.51 or 2.49% on a volume of 0.83 million shares.
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