MCO Earnings Prediction
The chart below shows how MCO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MCO sees a -1.41% change in stock price 10 days leading up to the earnings, and a +1.98% change 10 days following the report. On the earnings day itself, the stock moves by +0.13%. This data can give you a slight idea of what to expect for the next quarter's release.
MCO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.81B
23.17%
-0.22%
Gross Margin
65.80%
0.37%
-3.42%
Operating Margin
41.86%
9.64%
-3.97%
Net Margin
29.45%
11.17%
-3.22%
EPS
2.93
38.86%
-2.98%
No Data Available
MCO Earnings Analysis
Moody's Corporation Corporation (MCO.N) Earnings Conference Call
Positive
Record Revenue Performance: Moody's reported a record third quarter revenue performance, achieving $1.8 billion, which represents a 23% increase compared to last year.
EPS Growth Achievement: The company delivered a 32% growth in adjusted diluted EPS, showcasing strong profitability metrics.
Revenue Surge in Ratings: Moody's rating business experienced a remarkable 41% increase in revenue versus the prior year period, highlighting robust demand.
Strong Cash Generation: The company achieved a free cash flow conversion rate of over 100% of net income, indicating strong cash generation capabilities.
Customer Retention Success: Year-to-date customer retention is at 93%, demonstrating the effectiveness of Moody's solutions in maintaining client relationships.
Negative
Quarterly Revenue Decline: The revenue growth for the third quarter was 7%, which is lower than the 9% seen prior to the attrition events discussed in previous calls.
KYC ARR Growth Decline: The KYC ARR growth was 14% in the third quarter, which was lower than the 19% seen in Q3 last year, indicating a decline in growth rate.
Earnings Growth Slowdown: The adjusted diluted EPS guidance for Q4 implies a relatively flat growth compared to the prior period, suggesting a slowdown in earnings growth.
Fourth Quarter Issuance Decline: The company expects the fourth quarter issuance to decline, which may impact overall revenue projections for the year.
Debt Velocity Challenges: The overall debt velocity has been below historical averages, indicating potential challenges in revenue generation.
MCO FAQs
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MCO Earning Call Sentiment
Moody's Corporation (MCO) Q3 2024 Earnings Call Transcript
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00:00
00:00
MCO.N
1.32%Positive
The earnings call highlights robust financial performance with a 23% revenue increase and significant EPS growth. Positive factors include strategic partnerships, strong revenue growth, increased guidance for free cash flow and EPS, and high customer retention. The Q&A section reveals optimism about issuance conditions and tailwinds. Despite some renewal challenges, the overall sentiment is positive. The company's strategic moves, such as partnerships and acquisitions, further bolster its position, leading to a strong positive outlook for the stock price over the next two weeks.