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Moody’s Corporation Beats Earnings Estimates

Moody’s released its second quarter earnings report before opening bell this morning, posting earnings of $1.28 per share, a 14% year over year increase, on revenue of $918.1 million, a 10% increase in constant currency. Analysts had been expecting earnings of $1.22 per share and revenue of $899.44 million.

Moody's Corporation Beats Earnings Estimates

Key metrics from Moody’s earnings report

Moody’s reported a negative impact of 5% on its revenue by foreign currencies. In the U.S., the corporate credit ratings company recorded an 18% increase in revenue to $545.9 million. Revenue from outside the U.S. declined 10% to $372.2 million.

Revenue from outside the U.S. made up 41% of the company’s total revenue, compared to 47% in last year’s second quarter.

Moody’s earnings by segment

Revenue for Moody’s Investors Service increased 2% to $639.2 million. Foreign currencies had a negative impact of 5%. U.S. revenue for the segment increased 17% to $412 million, and international revenue declined 17% to $227.2 million.

Corporate finance revenue was basically flat at $319.6 million, which Moody’s said was due to strong investment-grade issuance as a result of an increase in mergers and acquisitions. However, lower levels of international speculative grade issuances mostly offset that gain. Corporate finance revenue in the U.S. rose 18%, and international revenue for the segment declined 25%.

Revenue from the structured finance segment rose 10% to $121.2 million due to strength in U.S. structured credit, RMBS and commercial real estate finance. The financial institutions business saw a 2% decline in revenue to $90.4 million, while revenue from the public, project and infrastructure finance business increased 2% to $99.9 million.

Revenue from Moody’s Analytics increased 12% year over year. There was a negative impact of 6% on the segment’s revenue from foreign currencies. The research, data, and analytics business saw an 11% increase in revenue to $157.5 million, while global enterprise risk solutions saw a 24% increase to $83.2 million. Professional services revenue declined 4% to $38.2 million.

As of this writing, shares of Moody’s were up 0.07% at $111.84 per share.