By Dave Sebastian

Moody's Corp. said it has raised its earnings and revenue outlook for 2021, with the assumption that the U.S. and euro-area economies would expand about 6% to 7% and 3.5% to 4.5%, respectively, this year.

The company Wednesday said it anticipates earnings of $10.40 to $10.70 a share for the year, or $11 to $11.30 a share on an adjusted basis. It previously guided for earnings of $9.70 to $10.10 a share, or $10.30 to $10.70 a share on an adjusted basis.

Moody's said it expects revenue to rise in the high-single-digit percentage range, compared with its prior outlook of mid-single-digit growth.

The company said it expects free cash flow of $2.1 billion to $2.2 billion, compared with its prior guidance of $1.9 billion to $2.1 billion. It said it expects share repurchases of about $1.5 billion for the year and operating expenses to rise in the mid-single-digit percentage range.

For the outlook, Moody's said it also assumes that the U.S. high-yield interest rate spreads are below an average of about 450 basis points, the U.S. unemployment rate would decline to about 5% to 6%, and the global high-yield default rate would fall to a range of 3% to 4% by year's end.

The company said it expects Moody's Investors Service's revenue to grow in the mid-single-digit percentage range, compared with the prior guidance of roughly flat growth. It said it anticipates Moody's Analytics revenue growing in the low-double-digit percentage range.

Write to Dave Sebastian at dave.sebastian@wsj.com

(END) Dow Jones Newswires

04-28-21 0755ET