UPDATE: Moody's Posts Upbeat Q3 Earnings

Moody's MCO reported stronger-than-expected earnings for the third quarter. The New York-based firm posted quarterly earnings of $215.2 million, or $1 per share, up from $183.9 million, or $0.83 per share, in the year-ago period. Excluding special items, the company's earnings surged to $0.97 per share from $0.83 per share. Its revenue gained 16% to $816.1 million versus $705.5 million. However, analysts were expecting earnings of $0.90 per share on revenue of $787 million. Revenue for Moody's Investors Service rose 14% to $543.1 million, while Global structured finance revenue gained 22% to $102.1 million. Global financial institutions revenue rose 16% to $91.8 million, while revenue for Moody's Analytics jumped 20% to $273.0 million. Revenue from research, data and analytics climbed 10% to $146.8 million in the quarter. Operating expenses rose 13% to $466.4 million, while operating climbed 20% to $349.7 million. Adjusted operating income jumped 18% to $372.9 million. The company also reaffirmed its forecast for the full year. "Moody's achieved strong financial results in the third quarter, with record revenue growth in Moody's Analytics, and double-digit revenue growth in nearly every line of business in both Moody's Investors Service and Moody's Analytics,” said Raymond McDaniel, President and Chief Executive Officer of Moody's. Moody's shares rose 0.68% to close at $94.55 yesterday.