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.
At this year's inaugural London Quality Growth Investor conference, Denis Callioni, analyst and portfolio manager at European investment group Comgest, highlighted one of the top ideas of the Comgest Europe Growth Fund. According to the speaker, the team managing this fund focus on finding companies that have stainable growth trajectories with a proven track record Read More
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.