Moody’s Corporation (NYSE:MCO) released the results from its first quarter, posting diluted earnings per share of $1—a 20% increase—on $767.2 million in revenue. Basic earnings per share were $1. Analysts had been expecting the company to report earnings per share of 91 cents on $770.2 million in revenue.
The company’s revenue was a 5% year over year increase. Moody’s Corporation (NYSE:MCO) reported that operating income rose 19% to $333 million. Operating expenses declined 4% to $434.2 million.
“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 CEO of Moody’s Corporation (NYSE:MCO), in a statement.
Breaking down Moody’s results
Moody’s Corporation (NYSE:MCO)’s Investors Service reported $525.8 million in revenue, a 1% increase year over year. Within that division, global corporate finance revenue rose 2% to $264.4 million, while global structured finance revenue rose 2% to $95.3 million. Revenue from the company’s global financial institutions segment was $85.4 million. Revenue from global public, project and infrastructure finance fell 3% $80.7 million.
In the company’s Analytics division, Moody’s Corporation (NYSE:MCO) reported $241.4 million in revenue. Within that division, research, data and analytics revenue rose 15% to $140.9 million. Revenue from the company’s enterprise risk solutions increased 13% to $59.8 million as the company’s subscription revenue and software maintenance fees increased. Revenue from the company’s professional services segment rose 45% to $40.7 million, mostly because of Moody’s 2013 acquisition of Amba Investment Services and also growth in Copal Partners.
Moody’s looks ahead
Moody’s Corporation (NYSE:MCO) also reaffirmed its fiscal 2014 year guidance for high-single-digit percentage growth in revenue and earnings of between $3.90 and $4 per share.
During the first quarter, the company repurchased 2.5 million shares for $201.6 million and issued 2.9 million new shares under its annual employee stock compensation plans. As of the end of March, the company had 213.7 million outstanding shares, which is a 4% decline year over year. Moody’s Corporation (NYSE:MCO) ha $1.6 billion in share repurchase authorization left on its buyback program.
At the end of the quarter, Moody’s Corporation (NYSE:MCO) had $2.1 billion in outstanding debt and $1 billion of additional capacity on its revolving credit facility.