MSCI Inc has posted better-than-expected revenue and earnings for the third quarter on the back of a jump in index operating turnover and strong demand for its analytical products.
Revenue climbed by 15.9% to $724.71 million over the third quarter, MSCI reported on Tuesday, outdoing expectations for $714.59 million.
A 9.2% increase in adjusted earnings per share to $3.86 also beat expectations for $3.76.
CEO Henry Fernandez noted MSCI had enjoyed its best-ever third quarter in terms of recurring index and analytics sales.
Index operating revenue increased by 11.8% to $404.9 million, in part driven by higher asset-based fees and stronger recurring subscription revenues.
Analytics operating revenue climbed 11.7% to $172.4 million, which MSCI said reflected stronger recurring subscription growth for both multi-asset class and equity analytics products.
“All of this demonstrates our single most important competitive advantage: the global, diversified, and integrated nature of our franchise,” Fernandez added.
“MSCI has always tried to capture the biggest trends reshaping our industry, and we are now better equipped than ever to harness those trends while supporting both traditional and newer client segments.”
Overall net income climbed by 8.2% to $280.90 million, while MSCI’s adjusted earnings margin climbed from 61.8% to 62.2%.