Upcoming AWS Coverage on TriNet Group Post-Earnings Results
LONDON, UK / ACCESSWIRE / May 23, 2017 / Active Wall St. announces its post-earnings coverage on Moody's Corp. (NYSE: MCO). The Company posted its financial results for the first quarter fiscal 2017 (Q1 FY17) on May 05, 2017. The New York-based Company reported a 19% growth in revenues, while its adjusted EPS surged 58% y-o-y, beating market consensus estimates. Register with us now for your free membership at:
One of Moody's' competitors within the Business Services space, TriNet Group, Inc. (NYSE: TNET), reported on May 02, 2017, its financial results for Q1 ended March 31, 2017. AWS will be initiating a research report on TriNet in the coming days.
Today, AWS is promoting its earnings coverage on MCO; touching on TNET. Get our free coverage by signing up to
During the three months ended on March 31, 2017, Moody's reported revenues of $975.2 million, up from $816.1 million recorded at the end of Q1 FY16. Revenues numbers for the reported quarter outperformed market expectations of $911.1 million. The Company's US revenue rose 20% y-o-y to $577.8 million, while its non-US revenue was up by 18% y-o-y to $397.4 million in Q1 FY17. Furthermore, US constituted 41% of total revenue in Q1 FY17, which is consistent with the prior-year's comparable period.
The credit rating Company reported GAAP net income of $345.6 million, or $1.78 per diluted share, in Q1 FY17 above the $184.4 million, or $0.93 per diluted share, in Q1 FY16. Furthermore, the Company's non-GAAP net income for Q1 FY17 came in at $285.9 million, or $1.47 per diluted share, compared to $184.4 million, or $0.93 per diluted share, in Q1 FY16. Wall Street had forecasted adjusted earnings of $1.23 per diluted share for Q1 FY17.
For the quarter ended on March 31, 2017, the financial research Company reported operating income of $443.4 million, or 45.5% on revenue, compared to $304.1 million, or 37.3% of revenue, in the prior year's same quarter. The Company's adjusted operating income improved to $475.9 million, or 48.8% of revenues, in Q1 FY17 from $334.0 million, or 40.9% of revenues, in the year ago corresponding quarter.
Furthermore, Moody's total expense for Q1 FY17 came in at $531.8 million, up 4% y-o-y, primarily attributable to higher accruals for incentive compensation and acquisition of GGY in March 2016, partially offset by a favorable foreign currency translation impact of 1%.
During Q1 FY17, Moody's Investors Service revenue grew 27% to $668.2 million from $525.1 million in the year ago same period. The segment's US revenue came in at $422.5 million, up 26%, while its non-US revenue surged 30% y-o-y to $245.7 million in Q1 FY17.
Moody's Analytics global revenue for Q1 FY17 came in at $307.0 million, which was 5% higher than last year's recorded revenues of $291.0 million. The division's US revenue for Q1 FY16 was $155.3 million, up 8% y-o-y; whereas non-US revenue grew 3% y-o-y to $151.7 million. In the reported quarter, foreign currency translation had an unfavorable impact on the segment's revenues by 1%.
Cash Flow and Balance Sheet
Moody's reported net cash flows used in operating activities of $512.4 million in the first three months of fiscal 2017 versus to cash provided by operating activities of $253.6 million in the year ago comparable quarter. The Company reported a negative free cash flow of $531.1 million in Q1 FY17 versus to a positive free cash flow of $227.3 million in the prior year's comparable quarter.
As on March 31, 2017 the Company had cash and cash equivalents balance of $2.13 billion compared to $2.05 billion at the close of books on December 31, 2016. Furthermore, the Company ended the quarter with total debt of $4.08 billion, up from $3.36 billion as on December 31, 2016.
Dividend and Repurchase
In a separate press release on April 25, 2017, Moody's Board of Directors declared a regular quarterly dividend of $0.38 per share. The dividend will be payable on June 12, 2017, to stockholders of record at the close of business on May 22, 2017.
During Q1 FY17, the Company repurchased 0.50 million shares worth $55.0 million at an average price of $112.24 per share. As of March 31, 2017, Moody's had $0.7 billion remaining under its share repurchase authority. Furthermore, Moody's issued 1.5 million shares as part of its annual employee stock-based compensation plans in the reported quarter.
In its guidance for full year FY17, Moody's expects total revenue to rise in the mid-single-digit percent range. The Company increased its FY17 GAAP EPS guidance to the range of $5.46 to $5.61 from its previously provided range of $5.15 to $5.30. The non-GAAP EPS is forecasted to be between $5.15 and $5.30. Furthermore, the Company expects free cash for FY17 to be approximately $500 million.
At the closing bell, on Monday, May 22, 2017, Moody's share price finished the trading session at $114.97, slightly up 0.19%. A total volume of 541.90 thousand shares exchanged hands. The stock has surged 13.61% and 22.53% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have rallied 21.96%. The stock is trading at a PE ratio of 53.42 and has a dividend yield of 1.32%.
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