Credit rating agency, Moody’s Corporation (NYSE: MCO) reported on Friday that its fiscal first-quarter net income climbed 9%, driven by solid revenue growth in the U.S.
Moody’s also raised its full-year earnings guidance.
For the fiscal first quarter ended March 31, Moody’s reported net income of $188.4 million or 83 cents a share compared to a profit of $173.5 million or 76 cents a share, in the same quarter of last year.
Excluding onetime item (14 cents a share charge related to a settlement of a lawsuits), adjusted or non-GAAP earnings came at 97 cents a share.
Analysts polled by FactSet were expecting earnings of 85 cents a share.
Revenue for the period soared 13% to $731.8 million from $646.8 million, in the year-earlier quarter. The Street’s consensus estimate was of $729 million.
While revenue from the U.S. operations surged 18% to $406.1 million, revenue from international market, which accounts for about 35% of the entire revenue, rose 8% to $325.7 million.
Revenue from Moody’s Investors Service, a unit which rates credit rating of bonds issued by the governments and companies , increased 15% to $521.2 million and revenue from Moody’s Analytics, a unit which provides research and risk management services, climbed 9% to $210.6 million.
“Moody’s results in the first quarter of 2013 reflected strong operating performance for both Moody’s Investors Service and Moody`s Analytics,” said CEO Raymond McDaniel said in a statement.
Looking ahead at fiscal 2013, the rating agency now anticipates earnings in the range of $3.49 to $3.59 a share up from its original guidance of $3.45 to $3.55 a share. Revenue for the period is expected to grow by higher single digit percentage. Analysts’ consensus estimate was for earnings of $3.43 a share.
However, the Company is also expecting operating expenses to increase by mid-single-digit percentage range.
Meanwhile, Moody’s Corp also declared a quarterly dividend of 20 cents a share, payable on June 10 to shareholders of record on May 20.
MCO shares climbed about 2.50% in early trade.