2023-04-25 15:47:34 ET
MSCI Inc. ( NYSE: MSCI ) stock plummeted 12.5% in Tuesday mid-afternoon trading after the index provider turned in first-quarter operating revenue that fell short of the average analyst estimate. Of note, its outlook for the full year was reaffirmed.
Q1 operating revenue of $592.2M, slightly trailing the $593.9M consensus, rose from $576.2M in the previous quarter and from $559.9M a year earlier.
“We have not been immune to the market turmoil, which impacted sales in areas such as ESG and Real Estate, but our resilience and leadership in the industry continue to stand out," said Chairman and CEO Henry A. Fernandez.
Adjusted EPS of $3.14, vs. $3.00 consensus, climbed from $2.84 in Q4 2022 and from $2.98 in the year-ago quarter.
Total operating expenses were $277.6M, up from $267.5M in Q4 2022 and from $271M a year before.
Adjusted EBITDA came in at $344.7M, vs. advanced from $339.02M in Q4 2022 and from $318.5M in Q1 2022. Adjusted EBITDA margin of 58.2% vs. 58.8% in Q4 2022 and 56.9% in Q1 2022.
Total operating revenues by segment:
- Index: $339.4M -- up 3.1% Q/Q and 2.6% Y/Y.
- Analytics: $147.1M -- down 1.8% Q/Q and up 5.2% Y/Y.
- ESG and Climate: $67.1M -- up up 5.5% Q/Q and 28.9% Y/Y.
- All Other - Private Assets: $33.7M -- up 14.9% Q/Q and 3.6% Y/Y.
"We posted 13.3% organic recurring subscription revenue growth as well as our 37th consecutive quarter of double-digit Index recurring subscription Run Rate growth and 67.8% Run Rate growth from Climate across our product lines,” Fernandez said.
Earlier, MSCI declared a quarterly dividend of $1.38 per share.
For further details see:
MSCI stock sinks to January levels as Q1 revenue misses estimates