MSCI MSCI Inc

CHICAGO, March 17, 2011  Zacks.com Analyst Blog features: Time Warner Cable Inc. (NYSE: TWC), Netflix Inc. (Nasdaq: NFLX), Comcast (Nasdaq: CMCSA), FactSet Research (NYSE: FDS) and MSCI Inc. (NYSE: MSCI).

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Here are highlights from Wednesday's Analyst Blog:

Time Warner Cable to Boost iPad

Time Warner Cable Inc. (NYSE: TWC), the second-largest cable operator in the U.S., is launching new software that supports iPad applications to view live TV.

The application allows subscribers to enjoy live cable television viewing on the iPad while at home. Initially, the application will support thirty high definition cable channels but later more channels will be included.

But there are few drawbacks relating to the smooth functioning of the application. Firstly, the new application can only be used by those who are subscribing for both video and Internet services of Time Warner Cable. Secondly, it will only function at home when both the iPad and the company's cable modem are linked through a Wi-Fi router.

Now-a-days, there are so many options available to the people to watch their favorite programs. So the customer's expectations will gradually increase with the addition of more TV viewing options, which in turn will give rise to new degree of competitions.

There are few companies like Netflix Inc. (Nasdaq: NFLX) and Hulu Inc., which supports downloading of movies and TV shows in the iPad, but does not support live TV. Comcast (Nasdaq: CMCSA), the leader in the cable industry, declared that they will roll out their new application, which will support live TV by year-end 2011.

Few other cable companies boasting iPad applications perform dual functions. It is used for watching on-demand videos as well as it is used like TV remotes. But the new application by Time Warner Cable will not support remote functions nor does it give access to video on demand or shows stored on a digital video recorder.

Such functions will be incorporated in the coming years. Moreover, electronic instruments like laptops, smart phones and smart TVs will also benefit from the new applications in the coming years.

We, thus, maintain our long-term Neutral recommendation for Time Warner Cable Inc. Currently, Time Warner Cable Inc. has a Zacks #3 Rank, implying a short-term Hold rating on the stock.

FactSet Revenues Up, EPS Lags

FactSet Research (NYSE: FDS) reported second quarter 2011 EPS of 85 cents, below the Zacks Consensus Estimate of 87 cents.

Revenue

The company reported revenue of $177.6 million in the second quarter of 2011, up 13.0% from $157.3 million reported in the year-ago quarter.  FactSet witnessed some benefits from the increase in demand in its served markets, and also witnessed improvement in the annual subscription value and client count.

Revenues from the U.S. were $121.5 million, up 14.0% compared to the year-ago quarter. Non-U.S. revenues also increased 11.0% to $56.1 million.

Guidance

For the third quarter of fiscal 2011, FactSet expects revenue in the range of $181 million to $184 million. Diluted EPS for the third quarter is expected to be in the 90 to 92 cent range.

For full fiscal year 2011, capital expenditures, net of landlord contributions, is expected to be $22 million to $28 million.

The company is witnessing some benefits from growing demand  in overseas and developing markets, which also helped raise the client count. This apart, FactSet has a healthy cash balance.

Additionally, with the gradual recovery in the financial markets, spending on investment tools is also showing an improvement. On the other hand, Factset faces competition from MSCI Inc. (NYSE: MSCI) that might rationalize the growth prospects of the company in the coming quarters.

We have a short-term Buy rating (Zacks Rank #2) on FactSet shares.

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