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.
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