MSCI Q2 revenue slightly beats; FY operating expense outlook lifted
MSCI•Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Slight Beat* | $867 mln | $866.44 mln (12 Analysts) |
| Q2 Adjusted EPS | Meet | $4.94 | $4.94 (15 Analysts) |
| Q2 EPS | $4.69 | ||
| Q2 Net Income | $342 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell". The average consensus recommendation for the professional information services peer group is "buy". Wall Street's median 12-month price target for MSCI Inc is $710.00, about 13.6% above its July 20 closing price of $625.11. The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 27 three months ago.
Result drivers
- ASSET-BASED FEES - Higher asset-based fees driven by record ETF and non-ETF AUM linked to MSCI indexes
- RECURRING SUBSCRIPTION GROWTH - Recurring subscription revenue rose across client segments and regions, led by market cap-weighted and custom Index products
- PRODUCT LAUNCHES AND AI INNOVATION - Accelerated product launches and AI-driven enhancements contributed to momentum
