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From AdvisorBiz Moody's 2Q Profit Rises 11%, Beating Forecasts Thursday, July 29, 2010 (AP) NEW YORK -- Moody's Corp. on Thursday, July 29, posted an 11% jump in second-quarter profit, driven by a jump in revenue in its Moody's Investors Service unit. Moody's said net income rose to $121 million, or 51 cents per share, compared with $109.3 million, or 46 cents per share, in the year-ago period. Revenue rose 6% to $477.8 million, from $450.7 million last year. Analysts polled by Thomson Reuters, on average, expected profit of 44 cents per share, on revenue of $461.6 million. Revenue in the Moody's Investors Service unit rose 6%, to $326.6 million. That included a 12% jump in U.S. revenue, offsetting a 2% decline overseas. A 30% leap in U.S. corporate finance revenue within the unit was driven mostly by strong high-yield bank loan origination, while investment-grade bond market issuance was down, the company said. Global revenue for its Moody's Analytics unit also rose 6%, to $149.2 million. Moody's reaffirmed its forecast for full-year profit between $1.75 and $1.85 per share. The company said it expects compliance costs for new regulations will be about $15 million this year and between $15 million and $25 million in 2011. Analysts expect full-year profit of $1.82 per share, on average, with estimates ranging between $1.75 and $1.88. Read a story on Moody's downgrade of Portugal from the archives of InvestmentAdvisor.com. |