Moody's Corp. (MCO) Tops Q3 EPS by 16c; Update FY16 EPS Outlook; Offers Litigation Update

October 21, 2016 7:01 AM EDT
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Moody's Corp. (NYSE: MCO) reported Q3 EPS of $1.34, $0.16 better than the analyst estimate of $1.18. Revenue for the quarter came in at $917.1 million versus the consensus estimate of $894.05 million.

Litigation Update:

Following the global credit crisis of 2008, Moody’s has periodically received subpoenas and inquiries from various governmental authorities, including the US Department of Justice (DOJ) and states attorneys general. In a letter dated September 29, 2016, the DOJ stated that it is preparing a civil complaint to be filed against Moody’s and MIS in the US District Court for the District of New Jersey alleging certain violations of the Financial Institutions Reform, Recovery, and Enforcement Act in connection with the ratings MIS assigned to residential mortgage-backed securities and collateralized debt obligations in the period leading up to the 2008 financial crisis. The DOJ also stated that its investigation remains ongoing and may expand to include additional theories. A number of states attorneys general have indicated that they also expect to pursue similar claims under state law, which claims may include additional periods, theories, asset classes or activities. The Company is continuing to respond to the DOJ’s and states’ subpoenas and inquiries.

GUIDANCE:

Moody's Corp. sees FY2016 EPS of $4.62-$4.72, versus the consensus of $4.63.

For earnings history and earnings-related data on Moody's Corp. (MCO) click here.



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