Moody’s released the earnings results from its third fiscal quarter before opening bell this morning, posting earnings of $1.14 per share, a 14% year over year increase, on $834.9 million in revenue. Analysts had been looking for earnings of $1.07 per share on $849.88 million in revenue. In last year’s third quarter, the firm posted revenue of $816.1 million.

Moody's Corporation Misses On Top Line, Beats On Bottom

Moody’s revenue climbs in constant currencies

Moody’s revenue rose 2% on a reported basis and 7% in constant currencies. Operating income was flat year over year but up 5% in constant currencies at $349.7 million. Non-GAAP earnings were $1.11 per share.

Moody’s Investors Service revenue was flat at $548.1 million but up 5% in constant currencies. Revenue in the segment’s U.S. operations was $352.5 million, a 7% increase, while international revenue fell 10% to $195.6 million. Revenue from the global corporate finance business fell 5% year over year or 1% in constant currencies to $248.3 million, while global structured finance revenue rose 10% or 15% in constant currencies to $112.5 million. Revenue from the global financial institutions business fell 3% but rose 4% in constant currencies to $89.5 million. Revenue from global public, project and infrastructure finance increased 2% or 7% in constant currencies to $90.6 million.

Revenue from Moody’s Analytics increased 6% or 11% in constant currencies to $286.8 million. Research, data and analytics revenue increased 10% or 15% in constant currencies to $157.9 million, while global enterprise risk solutions revenue increased 14% or 18% in constant currencies to $92.2 million. Professional services revenue fell 19% or 14% in constant currency to $26.7 million.

Moody’s reaffirms guidance

Management also reaffirmed their previously provided full year guidance for earnings of between $4.55 and $4.65 per share. They said this morning that the guide now includes an impact of 3 cents per share from a “legacy tax matter.” Moody’s expect Moody’s Investors Service and Moody’s Analytics revenue to each rise in the mid-single digit percentage range.

As of this writing, shares of Moody’s were flat with Thursday’s closing price of $101.53 per share.