MSCI Beats On Q2 Earnings, Raises Q3 Dividend By 33%

MSCI Inc MSCI reported second-quarter FY21 revenue growth of 21.6% year-on-year to $498.2 million, surpassing the analyst consensus of $486 million.
The total run-rate rose 20.2% Y/Y to $1.98 billion, and the organic subscription run rate was 11.3%. The retention rate improved 90 basis points to 94.4%.
Index operating revenues rose 26% Y/Y to $306 million, aided by higher asset-based fees and recurring subscription revenues.
Analytics operating revenues increased 6.5% Y/Y to $135.9 million, driven by higher recurring subscription revenues from both Equity and Multi-Asset Class Analytics products.
ESG and Climate operating revenues grew 49.4% Y/Y to $39.3 million from solid growth from Ratings and Climate products.
All Other – Private Assets operating revenues improved 32.4% Y/Y to $17 million, reflecting vital contributions from Enterprise Analytics tools.
The operating margin contracted 80 basis points to 51.7%.
The adjusted EPS of $2.45 beat the analyst consensus of $2.30.
The adjusted EBITDA margin expanded 140 basis points to 59.2%.
MSCI generated $225.1 million in operating cash flow and held $2 billion in cash and equivalents.
The board raised the quarterly cash dividend by 33% to $1.04 per share for Q3 2021, payable on Aug. 31 to shareholders of record Aug. 13.
Outlook: MSCI raised the FY21 operating cash flow guidance from $885 million to $925 million earlier to $900 million -$940 million.
Price action: MSCI shares closed lower by 0.53% at $575.9 on Monday.

Earnings Calendar