Moody’s and Legg Mason released the earnings results from their most recently completed quarters before opening bell this morning. Legg Mason posted adjusted earnings of $1.03 per share on $702.3 million in revenue for its fourth fiscal quarter, beating the consensus estimates of 67 cents per share in earnings and $697.4 million in revenue. In the same quarter a year ago, the firm reported adjusted earnings of 86 cents per share.
Moody’s posted GAAP earnings of $1.11 per share on $865.6 million in revenue, a 13% year over year increase. Analysts had been looking for earnings of $1.03 per share on $827.6 million in revenue for the first fiscal quarter. In the same quarter last year, the credit ratings firm reported earnings of 97 cents per share on $767 million in revenue.
Key metrics from Legg Mason’s earnings report
Legg Mason’s net income was 73 cents per share or $83 million, compared to the previous quarter’s 67 cents per share or $77 million. In the same quarter last year, the firm reported net income of 58 cents per share or $68.9 million. As of the end of the quarter, Legg Mason had $703 billion in assets under management and recorded $6.2 billion in long term net inflows.
For the full 2015 fiscal year, the firm reported $16.5 billion in long term net inflows. Legg Mason reported net income of $2.04 per share in net income for the full year, compared to $2.33 per share in the 2014 fiscal year. Adjusted income for 2015 was $3.41 per share. Adjusted income for the full year was $3.26 per share or $378.8 million.
Key metrics from Moody’s earnings report
Moody’s Investors Service saw revenue rise 14% year over year to $602.3 million. The firm noted a negative impact of 5% for the segment for currency fluctuations. Revenue from corporate finance was $298.7 million, a 13% increase due to greater mergers and acquisitions activity. Structured finance reenue increased 6% due to strong commercial real estate issuance in the U.S. Revenue from financial institutions rose 10% to $93.8 million, while revenue from public, project and infrastructure finance increased 25% to $100.7 million.
Moody’s Analytics revenue increased 11% from last year to $263.3 million. The business’ research, data and analytics saw a 9% increase in revenue to $149.6 million, while its enterprise risk solutions revenue increased 29% to $77.1 million. Revenue from professional services declined 10% to $36.6 million.
Moody’s also reaffirmed its guidance of between $4.55 and $4.65 per share in GAAP earnings for this year.
