NEW YORK (AP) -- Moody's Corp. said Wednesday that its net income declined 30 percent in the fourth quarter as companies and governments issued fewer bonds for it to rate and expenses increased.
The ratings agency earned $96.2 million, or 43 cents per share, for the three months ended Dec. 31. That's down from earnings of $137.4 million, or 58 cents per share, the year before.
Analysts surveyed by FactSet were expecting profit of 48 cents per share.
Revenue rose less than 1 percent to $567.1 million from $564.3 million. Wall Street predicted revenue of $562 million.
Shares dropped $1.06, or 2.7 percent, to $37.92 in morning trading Wednesday.
U.S. revenue slipped 3 percent while international revenue rose 4 percent. International revenue makes up nearly half of the company's total revenue.
Revenue for Moody's Investors Service, which rates bonds issued by governments and corporations, fell 4 percent to $366.9 million. Moody's said that lower issuance of riskier bonds and loans around the world and of loans for projects and infrastructure in the U.S. hurt results.
The company's research and risk management unit, Moody's Analytics, reported a revenue increase of 10 percent to $200.2 million.
The company's total expenses rose 7 percent to $395 million from $367.7 million.
Moody's said that its full-year earnings increased 13 percent to $571.4 million, or $2.49 per share, from $507.8 million, or $2.15 per share, in 2010. Revenue rose 12 percent to $2.28 billion from $2.03 billion, driven by a 17 percent increase in overseas revenue. U.S. revenue rose 8 percent.
The ratings agency also gave a 2012 earnings outlook that was in range of Wall Street's expectations.
The New York company anticipates 2012 earnings between $2.62 and $2.72 per share, with revenue climbing in the high-single to low-double-digit percentage range.
Analysts predict earnings of $2.63 per share on revenue of $2.41 billion for the year. The revenue forecast indicates that analysts were expecting revenue to grow about 6 percent.
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