Moody’s Corp. (MCO) Boosts FY14 adj.-EPS Outlook

Moody’s Corp. (NYSE: MCO) announced new full-year 2014 guidance. Full-year 2014 non-GAAP EPS guidance is now in the range of $3.95 to $4.05, which excludes a $0.36 gain resulting from Moody’s acquisition of a controlling interest in ICRA Ltd. in the second quarter of 2014. Moody’s non-GAAP EPS guidance includes costs related to our acquisitions of WebEquity and a majority stake in ICRA. Non-GAAP EPS guidance now also includes costs related to our acquisition of the remaining outstanding shares of Copal Amba, which Moody’s expects to finalize in the fourth quarter of 2014. Full-year 2014 total share repurchases are now expected to be up to $1.25 billion, subject to available cash, market conditions and other ongoing capital allocation decisions.

*** The Street is looking for FY14 EPS of $4.02 and revenue of $3.3 billion.

Certain components of Moody’s 2014 revenue guidance have been modified to reflect the Company’s current view of business conditions. While global Moody’s Investors Service (“MIS”) revenue for full-year 2014 is still expected to increase in the high-single-digit percent range, U.S. and non-U.S. MIS revenues are now expected to increase in the high-single-digit percent range and low-double-digit percent range, respectively. MIS financial institutions ratings revenue is now expected to grow in the mid-single-digit percent range.

A full summary of Moody’s guidance as of September 30, 2014 is included in the table at the end of this press release. Moody's outlook for 2014 is based on assumptions about many macroeconomic and capital market factors, including interest rates, corporate profitability and business investment spending, merger and acquisition activity, consumer borrowing and securitization, and the amount of debt issued. There is an important degree of uncertainty surrounding these assumptions, and, if actual conditions differ, Moody's results for the year may differ materially from the current outlook. Our guidance assumes foreign currency translation at end-of-quarter exchange rates.

Moody's is holding its 2014 Investor Day conference today in New York City.

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