Moody's Corporation Reports Results For Third Quarter 2012

Moody’s Corporation (NYSE: MCO) today announced results for the third quarter 2012.

SUMMARY OF RESULTS FOR THIRD QUARTER 2012

Moody’s reported revenue of $688.5 million for the three months ended September 30, 2012, up 30% from $531.3 million for the third quarter of 2011. Expenses for the third quarter of 2012 totaled $418.8 million, 25% higher than in the prior-year period. Operating income for the quarter was $269.7 million, a 38% increase from $196.1 million for the same period last year. Adjusted operating income for the quarter was $293.8 million, a 36% increase from $215.3 million last year. Diluted earnings per share of $0.81 for the third quarter of 2012, which included a $0.06 legacy tax benefit, increased 42% from $0.57 in the third quarter of 2011. Excluding the legacy tax benefit in the current quarter, diluted earnings per share of $0.75 for the third quarter of 2012 were up 32% from the prior-year period.

"Moody's achieved double-digit revenue growth in all lines of businesses at Moody's Investors Service in the third quarter, with particularly strong performance in corporate finance. Moody’s also had continued strong growth in all areas of Moody's Analytics," said Raymond McDaniel, President and Chief Executive Officer of Moody’s. "Based on third quarter performance, we are raising our full-year 2012 EPS guidance to a range of $2.95 to $3.05, or $2.89 to $2.99 excluding a legacy tax benefit."

THIRD QUARTER REVENUE

For Moody’s Corporation overall, global revenue of $688.5 million for the third quarter of 2012 was up 30% from the third quarter of 2011. U.S. revenue of $375.4 million for the third quarter of 2012 increased 37% from the third quarter of 2011, while revenue generated outside the U.S. of $313.1 million increased 22% from the prior-year period.

Global revenue for Moody’s Investors Service (MIS) for the third quarter of 2012 was $473.5 million, up 35% from the prior-year period. U.S. revenue of $289.1 million for the third quarter of 2012 increased 45% from the third quarter of 2011. Outside the U.S., revenue of $184.4 million increased 21% from the year-ago period. Foreign currency translation unfavorably impacted MIS revenue by 4 percent.

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