NEW YORK (AP) — Moody's second-quarter net income increased by 42 percent as revenue improved at both of its divisions.
The credit ratings agency's performance beat Wall Street's expectations, and the company raised its full-year revenue forecast. It stock rose in premarket trading on Friday.
Moody's Corp. reported net income rose to $319.2 million, or $1.48 per share, from $225.5 million, or $1 per share, a year earlier.
Earnings, adjusted for non-recurring gains, came to $1.12 per share. The average per-share estimate of analysts surveyed by Zacks Investment Research was for a profit of 99 cents.
Revenue for the New York company climbed 16 percent to $873.5 million from $756 million. This beat Wall Street estimate of $805.1 million.
Revenue for Moody's Investors Service rose 16 percent to $621.7 million, while revenue for Moody's Analytics climbed 15 percent to $251.8 million.
Moody's expects a revenue increase in the low double-digit percentage range for the full year. Its prior guidance was for high single-digit percentage growth.
The company maintained its outlook for a 2014 adjusted profit of $3.90 to $4 per share. Analysts surveyed by FactSet expect $3.98 per share.
Moody's stock gained $1.52 to $94 in premarket trading about 75 minutes before the market open.