RiskMetrics Group Inc (RMG.N) posted a third-quarter profit that beat analysts' estimates, helped by a 40 percent drop in income tax provisions.
The company, which advises clients on how to navigate risk, said its annual effective tax rate declined due to increased tax credits and a one-time reversal of previously accrued income tax contingencies.
Third-quarter net income was $7.8 million, or 11 cents a share, compared with $6.3 million, or 9 cents a share, a year earlier.
Analysts on average had expected the company to earn 9 cents a share, according to Thomson Reuters I/B/E/S.
Adjusted EPS, before amortization of intangibles, one-time costs and stock-based compensation, was 19 cents, up from 16 cents a year earlier.
Provision for income taxes fell to $2.4 million from $4 million.
For the quarter, revenue dropped to $74 million from $75.6 million in the year-ago quarter.
Revenue fell as new sales and renewal rates declined during the first half of 2009, the company said.
Shares of the company closed at $15.00 Monday on the New York Stock Exchange.