MSCI Earnings: Here’s Why Investors are Happy Now

MSCI Inc. (NYSE:MSCI) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.40%.

MSCI Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 16% to $0.58 in the quarter versus EPS of $0.50 in the year-earlier quarter.

Revenue: Rose 8.1% to $257.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: MSCI Inc. reported adjusted EPS income of $0.58 per share. By that measure, the company beat the mean analyst estimate of $0.52. It beat the average revenue estimate of $255.32 million.

Quoting Management: “MSCI’s revenues and run rate continued to grow in the second quarter of 2013, aided by the acquisitions of IPD and InvestorForce, continued strength in our retention rates and a modest increase in new sales. We are working hard to bring the full value of MSCI’s unique products and services to our clients and I am excited by the opportunities we see to add value to our clients’ investment processes. We will continue to make investments in our business over the second half of 2013 and beyond in order to realize that potential,” Henry A. Fernandez, Chairman and CEO, said.

Key Stats (on next page)…

Revenue increased 2.38% from $251.91 million in the previous quarter. EPS increased 1.75% from $0.57 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.53 to a profit $0.52. For the current year, the average estimate has moved down from a profit of $2.17 to a profit of $2.13 over the last ninety days.

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