On Feb. 7, Moody's (NYSE:MCO) released fourth-quarter earnings for the period ended Dec. 31.

  • Revenues increased by 25%, thanks to strong performance across most of its business lines.
  • Net profit increased by 86%, primarily because of a one-time gain on the sale of a building. Excluding the gain, earnings grew 28%.
  • For 2007, company expects low double-digit percent revenue growth and a slight decline in the operating margin.
  • Moody's carries a four-star rating in Motley Fool CAPS, our community intelligence database.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$590.0

$473.2

24.7%

Net Profit

$278.6

$150.1

85.6%

EPS

$0.97

$0.50

94.0%

Diluted Shares

286.7

300.9

(4.7%)



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Operating Margin

78.5%

51.2%

27.3

Net Margin

47.2%

31.7%

15.5

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$483.5

$580.5

(16.7%)

Accounts Rec.

No Data

No Data

No Data



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

No Data

No Data

No Data

Notes Payable

$300

$300

0.0%



Learn the ways of the balance sheet.

Cash Flow Highlights

Apparently, Moody's was in no mood to provide cash flow data. (Boo!)

Find out why Fools always follow the money.

Segment Revenue

Q4 2006

Q4 2005

Change

Ratings

$480.9

$380.3

26.5%

Research

$69.4

$57.1

21.5%

Moody's KMV*

$39.7

$35.8

10.9%

*Moody's KMV develops credit risk assessment products for banks and corporations.

Related Companies:

  • McGraw Hill (NYSE:MHP)
  • Capital One Financial (NYSE:COF)
  • First Marblehead (NYSE:FMD)

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Moody's is a Motley Fool Stock Advisor recommendation. You can find out why with a 30-day free trial to the Gardner brothers' market-beating service. First Marblehead is a Hidden Gems pick.

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