For Moody’s Corporation overall, global revenue of $816.1 million for the third quarter of 2014 was up 16% from the third quarter of 2013. U.S. revenue of $449.1 million and non-U.S. revenue of $367.0 million increased 15% and 17%, respectively, from the third quarter of 2013. Revenue generated outside the U.S. represented 45% of Moody’s total revenue for the quarter, consistent with the year-ago period.

Global revenue for Moody’s Investors Service (“MIS”) for the third quarter of 2014 was $543.1 million, up 14% from the prior-year period. The impact of foreign currency translation on MIS revenue was negligible. U.S. revenue of $329.1 million and non-U.S. revenue of $214.0 million increased 13% and 14%, respectively, from the year-ago period.

Within MIS, global corporate finance revenue of $260.7 million in the third quarter of 2014 increased 12% from the prior-year period, reflecting a favorable mix of bond and bank loan issuance within the quarter, as well as additional monitoring revenue associated with new ratings customers. Corporate finance U.S. and non-U.S. revenue were up 8% and 19%, respectively, compared to the third quarter of 2013.

Global structured finance revenue totaled $102.1 million for the third quarter of 2014, a 22% increase from a year earlier, primarily reflecting increased rating activity for collateralized loan obligations (CLOs). Structured finance U.S. and non-U.S. revenue grew 31% and 7%, respectively, from the year-ago period.

Moody's Results Q3 2014Global financial institutions revenue of $91.8 million in the third quarter of 2014 increased 16% compared to the prior-year period. U.S. revenue increased 9% primarily due to increased issuance by insurance companies. Non-U.S. revenue increased 22% due to higher levels of bank issuance from China and Europe.

Global public, project and infrastructure finance revenue was $88.5 million for the third quarter of 2014, an increase of 7% from the third quarter of 2013. U.S. revenue was up 15% primarily due to increased rating activity in public finance and project finance. Non-U.S. revenue decreased 5% from the prior-year period primarily due to lower infrastructure issuance in Europe.

Global revenue for Moody’s Analytics (“MA”) for the third quarter of 2014 was $273.0 million, up 20% from the third quarter of 2013. Foreign currency translation favorably impacted MA revenue by 2 percent. U.S. revenue of $120.0 million and non-U.S. revenue of $153.0 million for the third quarter of 2014 increased 19% and 21%, respectively, from the prior-year period.

Revenue from research, data and analytics of $146.8 million increased by 10% from the prior-year period, driven by strong sales of credit research and content licensing. Enterprise risk solutions revenue of $81.1 million was up 26% over the prior-year period primarily due to growth in subscription and services revenue. Revenue from professional services of $45.1 million was up 54% from the prior-year period, primarily reflecting the December 2013 acquisition of Amba Investment Services.

ASSUMPTIONS AND OUTLOOK FOR FULL-YEAR 2014:  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 full-year 2014 non-GAAP EPS guidance remains in the range of $3.95 to $4.05, which excludes the $0.36 gain resulting from Moody’s acquisition of a controlling interest in ICRA Ltd. in the second quarter and the $0.03 legacy tax benefit in the third quarter.

Source:  Moody’s Earnings Release