This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Moody's: Today's Financial Loser

NEW YORK (TheStreet) -- Moody's Corp. (MCO) was the loser among major financial-services companies on Friday, with shares dropping 8% to close at $43.37.

A strong fourth-quarter earnings report and rosy guidance for 2013 weren't enough to allay investors' fears of a lawsuit similar to the one filed on Monday against competitor Standard & Poor's (a unit of McGraw-Hill (MHP)). BTIG analyst Mark Palmer said Moody's and the other ratings agencies might be facing an "existential threat" from additional lawsuits. There were also several reports saying New York Attorney General Eric Schneiderman and other state attorneys general were considering lawsuits of their own.

Moody's shares were down 22% from a week earlier. Shares of McGraw-Hill closed at $42.67, declining 3% on Friday and 27% from a week earlier.

The broad indices all ended higher after the Census Bureau said the U.S. trade deficit for December narrowed sharply to $38.5 billion in December from $48.6 billion in November. An increase of $3.3 billion in exports of goods was mostly made up of industrial supplies and materials. A decline of $6.1 billion in imports of goods was also mostly in industrial supplies and materials.

UBS economist Maury Harris earlier said he expected a "narrower trade gap" because of "a slight drop in oil prices and a healthy rise in aircraft exports," along with "some unwind of November's 11.1% surge in non-auto consumer goods imports (which was seen specifically in cell phones)."

Investors also cheered an agreement among European leaders for a new, long-term European Union budget, which was seen as a victory for British Prime Minister David Cameron. The 18-month negotiation ended with the EU cutting spending for the first time ever.

Moody's


Moody's Corp. on Friday reported fourth-quarter earnings of $160.1 million, or 70 cents a share, increasing from $96.2 million, or 43 cents a year earlier. Fourth-quarter revenue was up 33% year-over-year to $754.2 million, "with double-digit revenue growth in most lines of business," according to CEO Raymond McDaniel.

Full-year earnings for 2012 were $690 million, or $3.05 a share, increasing from $571.4 million, or $2.49 a share, in 2011. McDaniel said that, "despite ongoing economic uncertainty, we anticipate generally favorable market conditions to remain in place in 2013. As a result, Moody's expects revenue growth across all areas of the business, as well as earnings per share in the range of $3.45 to $3.55."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,122.01 +15.31 0.09%
S&P 500 2,000.12 +0.10 0.00%
NASDAQ 4,569.6210 -1.0160 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs