MSCI stock inches higher after posting strong Q3 results as index revenue surges

NEW YORK - MSCI Inc . (NYSE: NYSE:MSCI ) reported better-than-expected third quarter results on Tuesday, driven by strong growth in its index business as assets tied to MSCI indexes reached record levels.

The company's stock rose 0.79% following the earnings release.

The financial data and analytics provider posted adjusted earnings per share of $3.86, surpassing analyst estimates of $3.76. Revenue rose 15.9% year-over-year to $724.7 million, also topping expectations of $714.6 million.

MSCI's index segment, which accounts for over half of total revenue, saw operating revenue increase 11.8% to $404.9 million. Asset-based fees jumped 19.5% to $168.6 million, reflecting higher assets under management in ETFs and other investment products linked to MSCI indexes.

"MSCI's third-quarter results highlight the underlying strength of our business model and client footprint, as well as the essential role that our solutions play across the investment ecosystem," said Henry A. Fernandez, Chairman and CEO of MSCI.

The company's analytics segment also performed well, with revenue rising 11.7% to $172.4 million. ESG and climate revenue grew 14.5% to $83.6 million.

MSCI's total run rate, which represents the forward-looking annualized value of subscriptions, increased 17.3% year-over-year to $2.89 billion as of September 30.

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Source: Investing.com