MSCI Earnings: Here’s Why Investors are Ambivalent Now

MSCI Inc. (NYSE:MSCI) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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MSCI Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 29.55% to $0.57 in the quarter versus EPS of $0.44 in the year-earlier quarter.

Revenue: Rose 9.98% to $251.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: MSCI Inc. reported adjusted EPS income of $0.57 per share. By that measure, the company beat the mean analyst estimate of $0.54. It missed the average revenue estimate of $257.81 million.

Quoting Management: “MSCI reported 10% revenue growth in first quarter 2013, driven by a 7% increase in organic subscription revenue and aided by contributions from IPD and InvestorForce. Our Adjusted EBITDA grew by 8% and our decisions in 2012 to repay and refinance our debt and repurchase our shares helped lift Adjusted EPS by 30%,” Henry A. Fernandez, Chairman and CEO, said.

Key Stats (on next page)…

Revenue increased 1.95% from $247.08 million in the previous quarter. EPS increased 9.62% from $0.52 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.53 and has not changed. For the current year, the average estimate has moved up from a profit of $2.12 to a profit of $2.17 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]