WASHINGTON (dpa-AFX) - Credit ratings firm Moody's Corp. (MCO), Wednesday reported a lower fourth-quarter profit as pared margin and higher tax provision offset a slight rise in revenue that topped Street estimates.
New York-based Moody's posted fourth-quarter net income of $96 million or $0.43 per share, compared to $137.4 million or $0.58 per share a year ago.
On average, five analysts polled by Thomson Reuters expected earnings of $0.48 per share for the quarter. Analysts' estimates typically exclude items.
Operating margin for the quarter declined to 30.3 percent from 34.8 percent last year, due mainly to a higher headcount and technology investments.
Results were also impacted by higher income tax provision at $57.5 million, compared to $33.7 million last year when results benefited from foreign tax credits and lower state taxes.
Revenues for the quarter edged up to $567 million from $564.3 million last year. Analysts expected revenues of $558.55 million.
U.S. revenue fell 3 percent from last year, while outside the U.S. the growth was 4 percent.
At Moody's Investors Service, revenue slipped 4 percent from the prior year, while Moody's Analytics segment grew 10 percent.
Moody's expect full year 2012 earnings in the range of $2.62 to $2.72 per share. Analysts currently expect earnings of $2.62 per share for the quarter.
The company expects revenue for the period to grow in the high-single to low-double-digit percent range.
MCO is trading at $38.30, down $0.68 or 1.74%, on a volume of 1.7 million shares on the NYSE.
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