Moody’s quarter profit raises 41
The company boosted its outlook for full-year 2012 profit to a range of 2.95 to 3.05 per share.
Moody’s Corp reported a 41 per cent jump in quarterly profit on Friday and the bond rating company raised its full-year earnings forecast for the second time in six weeks.
The company boosted its outlook for full-year 2012 profit to a range of 2.95 to 3.05 per share,up about 7 percent from a range of 2.76 to 2.86 it forecast on Sept. 12.
The company now expects full-year revenue from bond ratings to increase in the mid-teens in percentage terms,up from the high-single-digits it forecast in September.
For the third quarter,corporate ratings-related revenue increased 71 per cent from a year earlier,when the European debt crisis cast a darker shadow over the capital markets.
Net income attributable to the company rose to 183.9 million,or 81 cents per share,from 130.7 million,or 57 cents per share,a year earlier,the company said.
Adjusted for an unusual tax benefit,the company earned 75 cents a share,beating the average analyst estimate of 63 cents,according to a survey.
The company said adjusted operating income rose 36 per cent from a year earlier.
Estimates have climbed recently as analysts saw more high yield,or junk,bonds come to market. Fees that rating agencies receive from issuers of the speculative grade bonds tend to be higher than fees from investment grade companies,according to Peter Appert,a Piper Jaffray analyst.
The new full-year outlook points to an increase of about 20 percent over 2011 earnings of 2.49 cents a share.
Moody’s shares have climbed 25 percent from the end of June through Thursday,when they closed at 45.72.
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