Moody’s Corporation reported record revenue of $1.0 billion for the three months ended June 30, 2017, up 8% from the same period of 2016.

Operating expense totaled $543.0 million, up 5% from the same period in 2016. Operating income was $457.5 million, up 12% from the prior-year period, and adjusted operating income (operating income before depreciation, amortization and expenses associated with the pending acquisition of Bureau van Dijk, referred to as “Acquisition-Related Expenses”) was $497.0 million, up 13%. The operating margin for the second quarter was 45.7% and the adjusted operating margin was 49.7%.

Diluted EPS of $1.61 was up 24% from the second quarter of 2016 and adjusted diluted EPS of $1.51 was up 16%. Second quarter 2017 adjusted diluted EPS excludes a $0.13 unrealized gain on a foreign currency collar to economically hedge the Bureau van Dijk euro-denominated purchase price (the “Purchase Price Hedge Gain”) and $0.03 of Acquisition-Related Expenses.

Financial Highlights:

  • Global revenue of $1.0 billion for the second quarter of 2017, up 8% from the second quarter of 2016.
  • S. revenue was $567.8 million, up 4%, and non-U.S. revenue was $432.7 million, up 13%. Revenue generated outside the U.S. constituted 43% of total revenue, up from 41% in the prior-year period. The impact of foreign currency translation was negligible.
  • Global MIS revenue up 10%
  • Global MA revenue up 3.5%

“In the second quarter, Moody’s recorded $1.0 billion in quarterly revenue, as well as double-digit EPS growth,” said Raymond McDaniel, President and Chief Executive Officer of Moody’s. “Given the strength of the first half and a supportive market environment, we are raising our full year 2017 diluted EPS and adjusted diluted EPS guidance ranges to $5.69 to $5.84 and $5.35 to $5.50, respectively.”

Mr. McDaniel added, “We continue to expect our previously announced acquisition of Bureau van Dijk to close in the third quarter of 2017 and look forward to further extending Moody’s position as a leader in risk data and analytical insight.”

Source: Moody’s Earnings Release