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MSCI to Report Third-Quarter Earnings: What's in the Cards?

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MSCI (MSCI - Free Report) 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.
 

MSCI Inc Price and EPS Surprise

MSCI Inc Price and EPS Surprise

MSCI Inc price-eps-surprise | MSCI Inc Quote

 

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 - Free Report) 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 - Free Report) has an Earnings ESP of +4.43% and carries a Zacks Rank of 2, at present.

Amphenol (APH - Free Report) has an Earnings ESP of +1.02% and a Zacks Rank #2.

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