MSCI (MSCI) Q1 2025 Earnings Call April 22, 2025 11:00 AM ET Company Participants Jeremy Ulan - Head of Investor Relations & TreasurerHenry Fernandez - Chairman & CEOBaer Pettit - President & COOAndrew Wiechmann - CFOAlex Kramm - Managing Director - Equity ResearchAlexander Hess - Vice President - Equity ResearchFaiza Alwy - Managing Director, US Company ResearchScott Wurtzel - SVP - Equity ResearchJoshua Dennerlein - Head of Business & Information Services equity researchRussell Quelch - Managing Director ...

诺和诺德跌7.4%，在一众成分股里表现最差。 明晟公司MSCI北欧国家指数微幅下跌，报326.01点，北欧医疗保健板块领跌。 ...

MSCI (MSCI) reported $745.83 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 9.7%. EPS of $4.00 for the same period compares to $3.52 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $740.98 million, representing a surprise of +0.66%. The company delivered an EPS surprise of +3.36%, with the consensus EPS estimate being $3.87.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how th ...

MSCI (MSCI) came out with quarterly earnings of $4 per share, beating the Zacks Consensus Estimate of $3.87 per share. This compares to earnings of $3.52 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.36%. A quarter ago, it was expected that this maker of software tools to help portfolio managers make investment decisions would post earnings of $3.96 per share when it actually produced earnings of $4.18, delivering a surpri ...

Financial Performance - Operating revenues for Q1 2025 were $745.8 million, an increase of 9.7% compared to Q1 2024, with organic operating revenue growth of 9.9%[6] - Net income rose to $288.6 million, reflecting a 12.8% increase year-over-year, while diluted EPS increased by 15.2% to $3.71[6] - Recurring subscription revenues grew by 7.7%, and asset-based fees increased by 18.1%[6] - Adjusted EBITDA for Q1 2025 was $425.6 million, up 11.0%, with an adjusted EBITDA margin of 57.1%[13] - The Index segment reported operating revenues of $421.7 million, a 12.8% increase, driven by higher asset-based fees and recurring subscription revenues[14] - The Analytics segment's operating revenues were $172.2 million, up 5.0%, primarily from recurring subscriptions[17] - Sustainability and Climate segment revenues increased by 8.6% to $84.6 million, with organic growth of 9.2%[22] - Recurring subscriptions revenue grew by 9.6% to $233.330 million in Q1 2025 from $212.995 million in Q1 2024[67] - Adjusted EBITDA for Q1 2025 was $311.571 million, up from $277.760 million in Q1 2024, reflecting a growth of 12.2%[67] - The adjusted EBITDA margin for Q1 2025 was 73.9%, slightly down from 74.3% in Q1 2024[67] - Consolidated adjusted EBITDA for the three months ended March 31, 2025, was $425,641, compared to $383,573 in 2024, representing an increase of 11.0%[79] Expenses and Guidance - Total operating expenses were $368.8 million, an increase of 8.3%, primarily due to higher compensation and benefits costs[9] - MSCI's Full-Year 2025 guidance includes operating expenses projected between $1,405 million and $1,445 million[34] - Adjusted EBITDA expenses are expected to be in the range of $1,220 million to $1,250 million for Full-Year 2025[34] - The effective tax rate is anticipated to be between 17.5% and 20.0%[34] - Capital expenditures are forecasted to be between $115 million and $125 million[34] Cash Flow and Shareholder Returns - Approximately $139.7 million in dividends were paid to shareholders in Q1 2025, with a cash dividend of $1.80 per share declared for Q2 2025[31] - Net cash provided by operating activities is projected to be between $1,525 million and $1,575 million[34] - Free cash flow is expected to range from $1,400 million to $1,460 million[34] - Free cash flow for the three months ended March 31, 2025, was $268,876, slightly down from $275,900 in the same period last year[84] - The company repurchased $213.093 million worth of common stock during Q1 2025, compared to $69.991 million in Q1 2024, indicating a significant increase in share buybacks[65] Assets and Liabilities - Total current assets decreased to $1.236 billion as of March 31, 2025, down from $1.344 billion at the end of 2024, a decline of 8.0%[63] - Total liabilities decreased slightly to $6.303 billion from $6.385 billion at the end of 2024, a reduction of 1.3%[63] - Cash and cash equivalents at the end of Q1 2025 were $360.671 million, down from $409.351 million at the end of 2024, a decrease of 11.8%[65] Sales and Retention - The total retention rate improved to 95.3% from 92.8% year-over-year, indicating stronger customer loyalty[74] - The net new recurring subscription sales increased by 60.8% to $14.17 million compared to $8.81 million in the same quarter of 2024[74] - New recurring subscription sales decreased by 4.6% to $22.42 million from $23.51 million in the previous year[74] - Non-recurring sales for the three months ended March 31, 2025, were $12.37 million, a decline of 3.4% from $12.81 million in the same period of 2024[74] - The total gross sales for the quarter were $70.14 million, down 6.9% from $75.37 million year-over-year[74] Market Performance - The period-end AUM in ETFs linked to MSCI equity indexes was $1,783.1 billion as of March 31, 2025, reflecting a market appreciation of $16.4 billion during the quarter[75] - Total Run Rate as of March 31, 2025, reached $2,979,248, reflecting a 9.3% increase from $2,726,484 in 2024[77] - Recurring subscriptions amounted to $948,387, up 9.0% from $869,931 in the previous year[77] - Organic operating revenue growth for the consolidated segment was 9.9%, with recurring subscription growth at 7.9% and asset-based fees growth at 18.1%[85]

Group 1 - MSCI's stock has been an outperformer in the financial sector amid market turmoil due to its asset-light business model, high client switching costs, and lack of direct impact from tariffs [1] - The company is favored by investors looking for growth and quality factors, combining a strong growth narrative with robust financial statements [1] - The analyst has a long position in MSCI shares, indicating confidence in the company's performance [2]

Core Viewpoint - MSCI is expected to report its first-quarter 2025 results on April 22, with earnings estimated at $3.87 per share, reflecting a 9.94% increase year-over-year, and revenues projected at $739.69 million, indicating an 8.78% rise from the previous year [1][3]. Group 1: Earnings and Revenue Expectations - The Zacks Consensus Estimate for MSCI's earnings has declined by a penny in the past 30 days, but still shows a positive year-over-year growth [1]. - The revenue consensus suggests a significant increase compared to the same quarter last year, highlighting strong performance expectations [1]. Group 2: Recent Performance Trends - MSCI has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 3.13% [2]. - The company's performance is anticipated to benefit from growing recurring revenues and an expanding global client base, particularly due to the integration of Climate and ESG solutions [3]. Group 3: Strategic Partnerships and Product Offerings - The partnership with Moody's is expected to enhance MSCI's ESG segment growth, particularly in Europe and Asia, contributing positively to the upcoming quarter's performance [4]. - MSCI's specialized analytics tool for wealth managers is likely to support its growth by addressing portfolio customization needs [5]. - Demand for custom indices and specialized portfolio construction tools remains strong, aided by the integration of the Foxberry F9 platform into MSCI's product suite [6]. Group 4: Challenges and Headwinds - MSCI faces challenges from foreign exchange fluctuations and cyclical pressures in certain asset manager segments, which may impact revenue growth [7]. - Cancellations in the real assets segment due to client events and vendor consolidations are also expected to affect performance in the upcoming quarter [7]. Group 5: Earnings ESP and Zacks Rank - According to the Zacks model, MSCI has an Earnings ESP of -0.61% and a Zacks Rank of 3, indicating lower odds of an earnings beat compared to other stocks [8].

Core Viewpoint - Analysts project that MSCI will report quarterly earnings of $3.85 per share, reflecting a 9.4% year-over-year increase, with revenues expected to reach $739.29 million, an 8.7% increase from the same quarter last year [1]. Earnings Projections - The consensus EPS estimate has been revised upward by 0.2% in the past 30 days, indicating a reassessment by covering analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts estimate 'Operating Revenues- ESG and Climate' at $84.52 million, an increase of 8.5% year-over-year [5]. - 'Operating Revenues- Asset-based fees - Total' is forecasted to reach $171.67 million, suggesting a 14.3% year-over-year change [5]. - 'Operating Revenues- Analytics' is expected to be $171.80 million, indicating a 4.8% increase from the prior-year quarter [5]. Asset Management Metrics - 'Operating Revenues- All Other - Private Assets' is projected to be $68.67 million, reflecting a 6.9% year-over-year increase [6]. - Analysts expect 'Period-End AUM in ETFs linked to MSCI equity indexes' to reach $1.80 billion, up from $1.58 billion in the same quarter last year [6]. Subscription Metrics - The average prediction for 'Index Run Rate - Recurring subscriptions' is $948.34 million, compared to $869.93 million in the same quarter last year [7]. - 'Total Run Rate - Total recurring subscriptions' is expected to be $2.27 billion, up from $2.11 billion in the same quarter last year [7]. Retention Rates - The projected 'Total Retention Rate' is 93.6%, an increase from 92.8% year-over-year [8]. - The 'Index Retention Rate' consensus stands at 94.5%, compared to 93.2% in the same quarter last year [10]. Additional Metrics - 'Period Average AUM in ETFs linked to MSCI equity Indexes' is expected to be $1.78 billion, up from $1.51 billion in the same quarter last year [9]. - The 'ESG and Climate Run Rate' is projected to reach $349.12 million, compared to $320.61 million in the same quarter last year [9]. Market Performance - Over the past month, MSCI shares have returned -2.1%, while the Zacks S&P 500 composite has changed by -4.2% [11].

Group 1 - Morgan Stanley lowered the target price for S&P Global from $618 to $565 [1] - Morgan Stanley also reduced the target price for MSCI from $680 to $650 [1]

Group 1 - MSCI Emerging Markets Index increased by 0.95%, marking the longest consecutive rise since February with four trading days of gains [1] - Among the constituent stocks, TSMC (Taiwan Semiconductor Manufacturing Company) led the performance [1]