MSCI to Report Third-Quarter Earnings: What's in the Cards?
MSCI's Q3 earnings are expected to have gained from robust adoption of its Factors and ESG solutions, as well as expanding new and existing clientele.
MSCI MSCI is set to report third-quarter 2021 results on Oct 26.
The Zacks Consensus Estimate for its third-quarter earnings has increased 0.4% to $2.39 per share over the past 30 days, suggesting 8.6% growth from the figure reported in the year-ago quarter.
The consensus mark for revenues is pegged at $504.5 million, indicating an increase of 18.6% from the year-ago quarter’s reported figure.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing the same in one, the earnings surprise being 8.2%, on average.
Let’s see how things are shaping up for the upcoming announcement.
Factors to Note
MSCI’s third-quarter 2021 results are expected to have benefited from the increasing uptake of ESG solutions in the investment process. Top-line growth is expected to reflect strong demand for custom and factor index modules.
The company’s focus on expanding into new areas like Wealth Management, Insurers, Derivatives and ESG & Climate are expected to have driven growth in customer base in third-quarter 2021.
MSCI’s strong recurring-revenue model has been a key catalyst. The Zacks Consensus Estimate for Index Recurring Subscription Run Rate is pegged at $668 million, indicating growth of 11.5% from the figure reported in the year-ago quarter.
Notably, assets under management in Equity ETFs linked to MSCI indexes were $1.34 trillion at the end of third-quarter 2021, unchanged from the figure reported at the end of second-quarter 2021.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
MSCI has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few other companies worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Alphabet GOOGL has an Earnings ESP of +7.71% and is Zacks #2 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.
CACI International CACI has an Earnings ESP of +4.43% and carries a Zacks Rank of 2, at present.
Amphenol APH has an Earnings ESP of +1.02% and a Zacks Rank #2.
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