Moody's (NYSE:MCO) EPS Estimate Raised on Lower Tax Rate

Lower foreign and state tax rates will result in stronger earnings per share for Moody's (NYSE:MCO), according to Benchmark.

Benchmark says, "Our 4Q10 revenue estimate rises to $561 million, up 16% y/y, versus our previous estimate of $505 million, up 4% y/y. We raise our reported 4Q10 EPS estimate to $0.55 from $0.42, including an estimated $0.07 benefit from a lower tax rate reflecting foreign tax credits and lower foreign and state taxes. Excluding the tax credit, 4Q10 EPS would be $0.48. For the year, our EPS estimate, rises to $2.12 ($2.03 excluding items) from $1.96, with total revenue of $2.03 billion, up 13% y/y. EBITDA may rise 12% y/y to $841 million."

Benchmark maintains a "Buy" rating on Moody's Corp, which closed Friday at $69.38, gaining $0.58, or 0.84 percent. Benchmark raised its price target on Moody's from $30 to $33.