In a remarkable display of resilience and growth, MSCI Inc (NYSE:MSCI). stock has soared to a 52-week high, reaching a price level of $632.08. With a substantial market capitalization of $49.3 billion, the company has demonstrated impressive momentum, posting a 28.5% gain over the past six months and a 23.5% increase over the past year. According to InvestingPro analysis, MSCI currently trades above its Fair Value, suggesting investors should carefully consider entry points. Investors have shown increased confidence in MSCI's business model and future prospects, propelling the stock to new heights. The company's performance is particularly noteworthy, with robust revenue growth of 16% and an impressive gross profit margin of 82%. InvestingPro subscribers can access 10+ additional exclusive insights and a comprehensive Pro Research Report, which provides deep-dive analysis of MSCI's financial health and growth prospects.
In other recent news, MSCI Inc. reported substantial growth for Q3 2024, with total revenue increasing by 16%, adjusted earnings per share rising by 12%, and free cash flow growing by 46%. The company also repurchased $199 million worth of shares, marking a total of $440 million for the year. Notably, MSCI achieved nearly 20% asset-based fee revenue growth, a 15% increase in subscription run rate, and a 94% retention rate. Record assets under management in ETFs and non-ETF products reached $18.6 billion in ETF cash flows for the quarter.
Despite a cyclical downturn in ESG and Climate services, MSCI's management anticipates long-term growth in these segments. The company raised its CapEx guidance by $10 million and increased free cash flow guidance by $80 million for 2024, with an expected tax timing benefit of $40 million. However, the company also anticipates continued elevated cancellation activity and longer sales cycles, which could impact retention rates.
In the face of these challenges, MSCI remains focused on strengthening its leadership in the ESG and private credit sectors for sustained growth. These recent developments highlight the company's resilience amid market pressures and its commitment to strategic advancement.
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