MSCI ( NYSE: MSCI ) on Tuesday has reduced its free cash flow guidance after its Q2 revenue came in weaker than expected amid a tough backdrop in equity markets.
"While our AUM-linked fees may remain challenged by depressed equity markets, we continue to see strength across most client segments and geographies," said CEO and Chairman Henry A. Fernandez.
The global index provider is expecting 2022 free cash flow of $1,005M-1,055M vs. $1,050M-1,100M in the prior target.
It sees net cash provided by operating activities of $1,080M-1,120M this year, compared with $1,120M-1,160M in the previous view.
Nevertheless, shares of MSCI ( MSCI ) are rising 0.6% in early morning trading, as its Q2 adjusted EPS of $2.78 topped the average analyst estimate of $2.67 and increased from $2.45 in the year-ago quarter.
Revenue of $551.8M, though, fell short of the consensus of $560.2M but gained from $498.2M in Q2 of last year.
Operating income was $300.4M at June 30, up from $257.5M at June 30, 2021.
Adjusted EBITDA for Q2 climbed to $331.1M from $294.9M in Q2 2021.
Q2 free cash flow of $193.6M decreased from $214.01M in Q2 2021.
Conference call at 10:30 a.m. ET.
Earlier this month, (July 18) MSCI appointed Cristina Bondolowski as chief marketing officer .
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MSCI lowers year free cash flow guidance after Q2 revenue miss