Moody's Profit Up 66% in Q4 on 33% Higher Revenues (MCO)

Moody’s Profit Up 66% in Q4 on 33% Higher Revenues (MCO)


Early on Friday credit rating agency Moody’s Corporation (MCO) saw its fourth-quarter profit surge as revenue spiked on a wave of debt issues. The results topped Wall Street views.

The New York-based company reported its fourth-quarter net income of $160.1 million, or 70 cents per share, up from $96.2 million, or 43 cents per share, earned in the same quarter a year earlier. According to Thomson Reuters, this just topped the analysts’ average view of 69 cents per share.

The company’s revenues were up 33% to $754.2 million from $567.1 million a year earlier. Analysts were expecting revenue to be $683.34 in the quarter.

In 2013 MCO expects revenue to grow across all areas of business with an EPS in a range of $3.45 to $3.55. Analysts are expecting the company to report earnings in 2013 at $3.18 per share.

However, Moody’s is facing uncertainty going forward; the US government recently launched a civil suit against competitor Standard & Poor’s over the mortgage bond ratings tied to the financial crisis. The question looming for Moody’s is whether the US Justice Department will end up suing the company for defrauding investors with bad ratings on various securities.

Moody’s shares saw no activity during pre-market on Friday. The stock is up about +22% over the trailing twelve months.

The Bottom Line
Shares of Moody’s (MCO) have a dividend yield of 1.70% based on last night’s closing price of $46.99 and the company’s annualized dividend payout of $46.99.

Moody’s Corporation (MCO) is not recommended at this time, holding a DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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