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.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsLong IdeasNewsGuidanceDividendsTechTrading IdeasBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!