Moody’s (NYSE:MCO) increased its guidance for its full year 2010 revenue and earnings per share, thanks to better than anticipated revenues for its ratings services for bond issuances and a lower than expected tax rate.
Full year and fourth quarter results from the New York headquartered group are due to be released before the start of trading on February 3rd, 2010.
Previous guidance for the full was for “high-single to low-double-digit” percent growth for revenues and earnings per share of $1.90 to $1.96. The company has now increased the full year revenue growth guidance to approximately 13% and upped the diluted earnings per share range to $2.08 to $2.14.
Full-year 2010 operating margin is expected to remain in the high-thirties percent range.
“The updated guidance is driven by a higher revenue forecast associated with robust fourth quarter bond market issuance benefiting Moody's Investors Service, and accelerated completion of software projects for customers of Moody's Analytics,” Moody’s explained.
“Updated guidance also reflects an estimated full-year 2010 effective tax rate of approximately 30% to 31%, which is below the previous projection of 33% to 34%, primarily due to utilization of foreign tax credits and lower foreign and state taxes.”