AP News

Moody's lifts full-year earnings, revenue outlooks


NEW YORK (AP) — Moody's Corp. has raised its earnings guidance and increased its full-year revenue forecast to a range above Wall Street's expectations.

The ratings agency said Wednesday that it now expects revenue to rise about 12 percent to 13 percent. Based on 2011's revenue of $2.28 billion, this implies about $2.56 billion to $2.58 billion. The New York company previously predicted a revenue increase in the low-double-digit percentage range.

Wall Street had expected $2.53 billion in revenue.

Adjusted earnings are now anticipated in a range of $2.70 to $2.80 per share, which excludes a benefit of 6 cents per share related to the favorable resolution of a legacy tax matter. Moody's Corp.'s prior guidance was for earnings toward the upper end of a $2.62 to $2.72 per share range.

Analysts polled by FactSet forecast earnings of $2.73 per share.

Helping drive the improved outlook are better results at Moody's Investors Service, which rates bonds issued by governments and corporations. In that unit, revenue is expected to climb in the high-single-digit percentage range. Previously, the company forecast an increase in the mid- to high-single-digit percent range.

For the U.S., the unit's revenue is anticipated to rise in the mid-teens percentage range, up from a prior outlook for an increase in the low-double-digit percent range. The company also raised its corporate revenue guidance as well as its outlooks for revenue from structured finance and public, project and infrastructure finance revenue.

Moody's Analytics, the research and risk management unit, reiterated its full-year revenue forecast and outlook for revenue in the U.S.

Non-U.S. revenue is now anticipated to rise in the mid- to high-teens percentage range. Previously the company forecast an increase in the high-teens percentage range.

The company will hold its investor day conference in New York on Wednesday.


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