Analyst Note| Rajiv Bhatia |
Wide moat-rated MSCI reported relatively solid third-quarter financial results. Revenue of $425 million were in line with the FactSet consensus of $424 million and expense favorability resulted in adjusted EBITDA of $249 million beating the consensus by 2%. Adjusted EPS of $2.20 handily beat the consensus of $1.81 as the firm’s tax rate came in much lower than expected. Net new sales of $26 million were roughly flat from the year-ago period and the firm’s retention rate dipped slightly to 94.5% from 95%.Though we are tweaking our model, there was little in MSCI’s earnings report that would cause us to materially alter our long-term view of the firm, so we are maintaining our $255 fair value estimate.