MPLN Earnings Prediction
The chart below shows how MPLN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MPLN sees a +12.99% change in stock price 10 days leading up to the earnings, and a -12.97% change 10 days following the report. On the earnings day itself, the stock moves by -13.98%. This data can give you a slight idea of what to expect for the next quarter's release.
MPLN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
230.50M
-5.07%
-1.28%
Gross Margin
26.52%
-15.60%
-3.74%
Operating Margin
10.52%
-37.19%
-19.63%
Net Margin
-169.83%
1608.55%
-31.25%
EPS
-24.25
-1527.52%
-32.22%
No Data Available
MPLN Earnings Analysis
MultiPlan Corporation Corporation (MPLN.N) Earnings Conference Call
Positive
Identified Potential Savings Growth: 1. Record Identified Potential Savings: MultiPlan achieved a record $6.4 billion in identified potential savings during Q3 2024, marking a 3% sequential increase and a 10% year-over-year increase in the core commercial health plan segment.
Cash Flow Performance: 2. Strong Cash Flow Generation: The company generated $72.8 million in net cash from operating activities and $41.1 million in free cash flow for Q3 2024, demonstrating robust cash flow management.
Cost Efficiency Goals: 3. Cost Efficiency Initiatives: MultiPlan is targeting cost efficiencies of 10% to 20% of its cost base over the next several years as part of its Vision 2030 plan, indicating a strong focus on operational efficiency.
Client Acquisition Success: 4. Positive Client Engagement: The company secured four new client logos and closed 165 opportunities in Q3 2024, reflecting strong client engagement and market penetration efforts.
Employee Benefits Enhancement: 5. Improved Employee Benefits: MultiPlan's internal benefits plan redesign led to nearly $4 million in savings, reducing benefit spend by 15% annually while improving the quality of the benefits plan for employees.
Negative
Revenue Decline Analysis: 1. Declining Revenues: Q3 revenues were approximately $230.5 million, down 5.1% from Q3 2023 and down 1.3% from the prior quarter, indicating a downward trend in financial performance.
Revenue Yield Decline: 2. Revenue Yield Decrease: The revenue yield declined about 15 basis points sequentially, resulting in a $2 million impact on revenue, primarily due to price and mix shifts.
Impairment Charge Impact: 3. Impairment Charges: The company recorded a non-cash impairment charge of approximately $361.6 million, bringing the year-to-date total impairment charges to roughly $1.4 million, negatively affecting GAAP earnings.
Cost Management Issues: 4. Cost Management Challenges: Adjusted EBITDA was $141.6 million, down 7% from the prior year quarter, with a margin decrease to 61.5%, reflecting ongoing cost management challenges amid declining revenues.
Revised Revenue Guidance: 5. Tightened Guidance: The full-year revenue guidance was narrowed to between $930 million and $940 million, down from the previous range of $935 million to $955 million, indicating a more conservative outlook for the business.
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MPLN Earning Call Sentiment
MultiPlan Corporation (MPLN) Q3 2024 Earnings Conference Call Transcript
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00:00
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MPLN.N
-1.53%Positive
The earnings call reveals several negative indicators: a decline in Q3 revenues, a substantial impairment charge, reduced revenue guidance, and a lack of a share buyback program. The Q&A section highlights ongoing challenges with client dependency and regulatory issues. While there are some positive signs, such as potential savings and stable business dynamics, the overall sentiment is negative due to the financial declines and uncertainties, particularly around revenue guidance and legal costs.
