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These Analysts Cut Their Forecasts On MSCI Following Q1 Results

Benzinga ·  Apr 24 07:51

MSCI Inc (NYSE:MSCI) reported upbeat earnings for its fiscal first quarter on Tuesday.

The company posted revenue growth of 14.8% year-on-year to $679.97 million, missing the consensus of $684.14 million. The adjusted EPS of $3.52 beat the consensus of $3.45, according to data from Benzinga Pro.

Index operating revenues of the investment research firm rose 10.2% Y/Y to $373.9 million, aided by higher recurring subscription revenues and asset-based fees. Analytics operating revenues increased 11.5% Y/Y to $164.0 million, driven by higher recurring subscription revenues from Equity and Multi-Asset Class Analytics products.

ESG and Climate operating revenues grew 16.1% year over year to $77.9 million, driven by solid growth in Ratings, Screening, and Climate products.

Henry A. Fernandez, Chairman and CEO of MSCI said, "Elevated cancels reflected a concentration of unusual client events, including a large merger among our banking clients. We are managing through these pressures and do not expect this level of cancels to continue."

For FY24, MSCI reiterated operating expense guidance of $1.30 billion – $1.34 billion, capex of $95 million – $105 million, and free cash flow of $1.225 billion – $1.285 billion.

MSCI shares fell 13.4% to close at $446.00 on Tuesday.

These analysts made changes to their price targets on MSCI following earnings announcement.

  • Deutsche Bank cut the price target on MSCI from $613 to $569. Deutsche Bank analyst Faiza Alwy upgraded the stock from Hold to Buy.
  • Morgan Stanley lowered the price target on MSCI from $671 to $615. Morgan Stanley analyst Toni Kaplan maintained an Overweight rating.

Now Read This: Meta Likely To Report Higher Q1 Earnings; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts

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