10-QPeriod: Q3 FY2010

MOODYS CORP /DE/ Quarterly Report for Q3 Ended Sep 30, 2010

Filed November 2, 2010For Securities:MCO

Summary

Moody's Corporation reported its third-quarter results for the period ending September 30, 2010. The company demonstrated a mixed performance, with a notable increase in revenue driven by its core credit rating business, particularly in North America and Europe. Despite challenges in certain segments, the overall financial health of Moody's appears stable, with solid cash flow generation and a strong balance sheet. Investors should pay close attention to the company's outlook for the remainder of the year, which indicates cautious optimism. The primary driver of revenue growth was the 'Issuer Services' segment, reflecting increased issuance activity in the corporate and structured finance markets. However, 'Information Services' showed more modest growth. Moody's continues to navigate a complex regulatory environment, which is a key factor to monitor. The company's ability to adapt to these changes and maintain its market position will be crucial for sustained long-term performance.

Financial Statements
Beta
Revenue$513.30M
SG&A Expenses$152.20M
Operating Expenses$324.40M
Operating Income$188.90M
Net Income$136.00M
EPS (Basic)$0.58
EPS (Diluted)$0.58
Shares Outstanding (Basic)234.30M
Shares Outstanding (Diluted)235.70M

Key Highlights

  • 1Revenue increased, primarily driven by the 'Issuer Services' segment, which includes credit ratings.
  • 2The 'Information Services' segment experienced more moderate revenue growth.
  • 3Moody's maintains a strong balance sheet and positive cash flow generation.
  • 4The company is actively managing its operations within an evolving regulatory landscape.
  • 5The 2010 outlook suggests cautious optimism for the remainder of the year.
  • 6Significant discussions are included regarding critical accounting estimates and potential contingencies.

Frequently Asked Questions

Revenue growth was primarily driven by the 'Issuer Services' segment, which includes the company's core credit rating business. This was supported by increased issuance activity in both the corporate and structured finance markets.

The 'Information Services' segment showed more modest revenue growth compared to the stronger performance observed in the 'Issuer Services' segment.

Moody's appears to be in a solid financial position, characterized by stable cash flow generation and a strong balance sheet. The company is actively managing its liquidity and capital resources.

Yes, Moody's explicitly discusses critical accounting estimates, potential contingencies, and the ongoing impact of regulation on its business. These are key areas for investors to monitor.