MSCI Reports 24.3% Profit Decline in Q4 on Higher Costs and Tough Comparisons
MSCI reported a 24.3% year-over-year decline in its fourth-quarter profit, primarily attributed to increased operating expenses and challenging comparisons with the previous year's exceptional gain.
Key Highlights:
* Operating revenue grew 7.7% to $743.5 million.
* Operating expenses rose 5.9% to $338.3 million.
* The company expanded its workforce by 5.8%, resulting in higher compensation and incentives.
* Net income dropped to $305.5 million ($3.90 per share) from $403.4 million ($5.07 per share) in Q4 2023.
The year-over-year comparison was impacted by a one-time gain of $143 million related to MSCI's investment in Burgiss Group in Q4 2023.
Market Reaction:
MSCI's stock price declined by 5.3% to $595.95 in premarket trading following the earnings announcement.