MSCI lowers free cash flow guidance for the year after second quarter revenue loss (NYSE:MSCI)

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MSCI (NYSE: MSCI) cut its free cash flow forecast on Tuesday after its second-quarter revenue was weaker than expected amid a difficult stock market environment.

“While our AUM fees may remain challenged by depression in equity markets, we continue to see strength across most customer segments and geographies,” said CEO and Chairman Henry A. Fernandez.

The global index provider expects free cash flow of $1,005-1,055 million for 2022 versus $1,050-1,100 million in the previous target.

He sees net cash provided by operating activities at $1,080-1,120 million this year, compared to $1,120-1,160 million in the previous view.

Nevertheless, MSCI (MSCI) shares are up 0.6% early in the morning as its second-quarter adjusted EPS of $2.78 beat analysts’ average estimate of $2.67 and rose from $2.45 in the year-ago quarter.

Revenue of $551.8 million, however, was below consensus of $560.2 million, but was up from $498.2 million in the second quarter of last year.

Q2 free cash flow of $193.6m decreased from $214.01m in Q2 2021.

Operating profit was $300.4 million as of June 30, up from $257.5 million as of June 30, 2021.

Adjusted EBITDA for Q2 increased to $331.1m from $294.9m in Q2 2021.

Conference call at 10:30 a.m. ET.

Earlier this month (July 18), MSCI appointed Cristina Bondolowski as Chief Marketing Officer.

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