Moody's Q1 Profit Rises, Tops Estimate; Reaffirms 2014 Guidance - Quick Facts

(RTTNews) - Credit ratings agency Moody's Corp. (MCO) said that its first-quarter net income attributable to the company rose to $218.0 million from the prior year's $188.4 million, with earnings per share improving to $1.00 from $0.83 in the first quarter of 2013. Analysts polled by Thomson Reuters expected the company to report earnings of $0.91 per share for the quarter. Analysts' estimates typically exclude special items.

Non-GAAP earnings per share for the prior year quarter were $0.97, which excluded a litigation settlement charge.

Revenue for the quarter was $767.2 million up 5% from $731.8 million last year. Eleven analysts estimated revenues of $770.18 million for the quarter. U.S. revenue of $425.6 million and non-U.S. revenue of $341.6 million increased 4% and 6%, respectively, from the first quarter of 2013. Revenue generated outside the U.S. represented 45% of Moody's total revenue for the quarter, consistent with the year-ago period.

"Moody's results for the first quarter reflected continued strength in Moody's Analytics, as well as modest growth in Moody's Investors Service despite variable market conditions," said Raymond McDaniel, President and Chief Executive Officer.

The company reaffirmed its 2014 guidance of high-single-digit percent revenue growth and earnings per share in the range of $3.90 to $4.00. Street currently is looking for fiscal year 2014 earnings of $3.95 per share on annual revenues of $3.22 billion.

Full-year 2014 total share repurchases are still expected to be approximately $1 billion, subject to available cash, market conditions and other ongoing capital allocation decisions.

On April 15, 2014, the Board of Directors of Moody's declared a regular quarterly dividend of 28 cents per share of MCO Common Stock. The dividend will be payable on June 10, 2014 to stockholders of record at the close of business on May 20, 2014.