Tuesday, RiskMetrics Group Inc. (RISK) reported a profit for the fourth quarter compared to a loss last year, boosted by a rise in revenue across the segments and lower operating costs and expenses. The company also provided revenue guidance for the fiscal 2010.
RiskMetrics' fourth-quarter net income was $7.60 million or $0.11 per share, compared to net loss of $149.09 million or $2.43 per share in the same quarter last year. Results for the year-ago quarter includes a $160.1 million non-cash impairment charge.
Adjusted net income for the quarter was $13.90 million, up 0.9% from $13.78 million in the year-ago period. Adjusted earnings per share for the quarter remained flat at $0.20.
On average, 10 analysts polled by Thomson Reuters expected the company to report earnings of $0.10 per share. Total revenues for the quarter rose 1.3% to $76.47 million from $75.49 million in the comparable quarter last year. Eight analysts estimated revenues of $75.48 million for the quarter.
On segmental basis, fourth quarter Risk revenues were $39.6 million, 2.3% down from last year period due to lower new sales, higher non-renewals rates, particularly in the hedge fund sector and negative currency impacts.
ISS revenues rose 5.4% to $36.9 million from the year-ago, primarily due to revenue added from the KLD and Innovest acquisitions and an increase in Corporate Compensation Advisory revenues partially offset by a decline in Proxy Research and Voting and CFRA revenues.
In the current quarter, total operating costs and expenses declined to $59.97 million from $216.77 million a year ago. The company recorded an income from operations of $16.49 million compared to a loss of $141.27 million in the prior year period, mainly due to the $160.1 million non-cash impairment charge recorded in 2008.
For the full year, RiskMetrics reported net income of $31.12 million or $0.46 per share, compared to net loss of $136.91 million or $2.28 per share last year. Adjusted net income was $53.78 million or $0.79 per share, up from $43.86 million or $0.65 per share in the prior year. Total revenues increased to $303.36 million from $296.39 million in the prior year.
Analysts expected the company to earn $0.44 per share on revenues of $302.37 million for the full year.
Looking forward, the company expects revenue for 2010 to be in the range of $315 million - $325 million. Eight analysts estimate revenues of $316.76 million for the fiscal 2010.
RISK is currently trading at $17.66, down $0.13 or 0.74% on the NYSE.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.