Stock Monitor: Plantronics Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 22, 2018 / Active-Investors.com has just released a free earnings report on MSCI Inc. (NYSE: MSCI). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=MSCI. The Company reported its fourth quarter fiscal 2017 and full fiscal year 2017 operating and financial results on February 01, 2018. The maker of software tools to help portfolio managers make investment decisions surpassed top- and bottom-line expectations. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for Plantronics, Inc. (NYSE: PLT), which also belongs to the Technology sector as the Company MSCI Inc. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, MSCI Inc. most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/?symbol=MSCI
Earnings Highlights and Summary
For the fourth quarter of the fiscal year 2017, MSCI's operating revenues advanced 14.3% to $334.8 million compared to $292.8 million for Q4 2016, driven by a 40.7% increase in asset-based fees and an 8.7% growth in recurring subscriptions. The Company's revenue numbers beat analysts' estimates of $331.8 million.
For the full year FY17, MSCI's operating revenues jumped 10.7% to $1.27 billion compared to $1.15 billion for FY16. The increase in revenues was attributed to a 31.3% increase in asset-based fees and a 6.5% increase in recurring subscriptions, partially offset by a 6.4% drop in non-recurring revenues.
As of December 31, 2017, MSCI's total run rate grew by 17.4% to $1.37 billion on a y-o-y basis. The increase was driven by a 10.8% growth in subscription run rate to $1.05 billion, and a surge in asset-based fees run rate of 46.0% to $316.8 million.
MSCI's total operating expenses increased 8.4% to $180.8 million on a y-o-y basis for Q4 2017, driven by a 13.2% increase in compensation and benefits expenses, as well as a 4.3% increase in non-compensation expenses, primarily reflecting an increase in marketing expenses. The Company's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) increased 10.5% to $161.1 million for the reported quarter.
MSCI's income tax expenses were $62.4 million and $162.9 million for Q4 2017 and FY17, respectively, and included a net charge of $34.5 million related to the Tax Cuts and Jobs Act (TCJA) that was enacted on December 22, 2017. The Company's effective tax rate was 49.1% and 34.9% for Q4 2017 and FY17, respectively, of which 27.2% and 7.4%, respectively, was related to the TCJA.
MSCI's adjusted EBITDA jumped 18.2% to $173.6 on a y-o-y basis for Q4 2017, while adjusted EBITDA margin came in at 51.9% in the reported quarter compared to 50.2% in the year earlier same quarter.
For Q4 2017, MSCI's net income totaled $64.60 million, or $0.70 per diluted share, compared to $68.25 million, or $0.73 per diluted share, in Q4 2016. On an adjusted basis, the Company reported earnings per share (EPS) of $1.15, up 42% versus $0.81 in the year earlier comparable quarter, and which were ahead of Wall Street's estimates of $0.99.
For FY17, MSCI's net income was $303.97 million, or $3.31 per diluted share, compared to $260.86 million, or $2.70 per diluted share, for FY16. The Company's adjusted EPS surged 31.4% to $3.98 compared to $3.03 in FY16.
Cash Matters
MSCI's total cash and cash equivalents were $889.5 million as of December 31, 2017, of which $503.0 million was held outside of the United States. The Company's total outstanding debt was $2.10 billion as of December 31, 2017, excluding deferred financing fees of $21.9 million. MSCI's net debt was $1.21 billion at December 31, 2017.
During Q4 2017, MSCI's net cash provided by operating activities increased to $143.2 million compared to $138.9 million in Q4 2016, due to higher cash collections. The Company's capital expenditure was $20.6 million for the reported quarter compared to $10.5 million in the prior year's corresponding quarter. For Q4 2017, MSCI's free cash flow decreased to $122.6 million compared to $128.3 million in Q4 2016, due to higher capital expenditure, partially offset by a higher net cash provided by operating activities.
In Q4 2017, MSCI repurchased a negligible number of its shares on the open market. A total of $0.7 billion was remaining on the Company's outstanding share repurchase authorization as of January 26, 2018.
Headcount Details
As of December 31, 2017, MSCI's total employee strength was 3,038, up 6.1% from 2,862 as of December 31, 2016. As of December 31, 2017, a total of 41.0% and 59.0% of employees were located in developed market and emerging market centers, respectively, compared to 43.8% in developed market centers and 56.2% in emerging market centers as of December 31, 2016.
Stock Performance Snapshot
February 21, 2018 - At Wednesday's closing bell, MSCI Inc.'s stock dropped 1.10%, ending the trading session at $142.79.
Volume traded for the day: 508.75 thousand shares, which was above the 3-month average volume of 492.56 thousand shares.
Stock performance in the last month - up 2.53%; previous three-month period - up 12.81%; past twelve-month period - up 51.07%; and year-to-date - up 12.84%
After yesterday's close, MSCI Inc.'s market cap was at $13.15 billion.
Price to Earnings (P/E) ratio was at 43.17.
The stock has a dividend yield of 1.06%.
The stock is part of the Technology sector, categorized under the Processing Systems & Products industry.
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