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MSCI Scheduled to Report Q4 Earnings: What's in the Cards?

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MSCI (MSCI - Free Report) is set to report its fourth-quarter 2022 results on Jan 31.

The Zacks Consensus Estimate for fourth-quarter earnings has been unchanged at $2.71 per share over the past 30 days, suggesting 7.97% growth from the figure reported in the year-ago quarter.

The consensus mark for revenues is pegged at $565.16 million, indicating an increase of 2.79% from the year-ago quarter's reported number.

Notably, the company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the earnings surprise being 3.65%, 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 have shaped up for the upcoming announcement.

Factors to Note

MSCI’s fourth-quarter 2022 results are expected to reflect benefits of the increasing uptake of climate and ESG solutions in the investment process.

Expanding use of ESG tools bodes well for the company. The retention rate for ESG and Climate tools was 97.4% in the third quarter of 2022, reflecting strong demand for the company’s solutions.

MSCI’s expanding portfolio of ESG and Climate tools has been noteworthy. The company’s Net Zero tracker illustrates how listed companies align with different temperature rise scenarios. The availability of new equity factor models, including the first models to offer sustainability, crowding and machine learning factors, has been a key catalyst. The sustainability factor includes ESG and carbon efficiency components, which are expected to have aided the demand for MSCI’s solutions.

Partnership with Snowflake boosts MSCI’s distribution capabilities of these factor models. The company has also collaborated with MarketAxess Holdings to offer innovative portfolio analytics solutions and co-branded Fixed Income Indexes.

Moreover, MSCI’s focus on expanding into new areas like Wealth Management, Insurers, Derivatives, case funds, broker-dealers, and ESG & Climate is expected to have driven growth in its customer base in the to-be-reported quarter.

However, turbulent equity markets are expected to have negatively impacted revenues generated from asset-based fees in the to-be-reported quarter. Moreover, unfavorable forex has been concerning.

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.

MSCI has an Earnings ESP of +0.43% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider   

Here are a few other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases:

Juniper (JNPR - Free Report) has an Earnings ESP of +1.89% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Juniper shares have moved up 0.7% in the past year. JNPR is set to report its fourth-quarter 2022 results on Jan 31.

Perion Network (PERI - Free Report) currently has an Earnings ESP of +13.40% and a Zacks Rank #3.

Perion shares have declined 36.5% in the past year. PERI is set to report its fourth-quarter 2022 results on Feb 8.

Apple (AAPL - Free Report) has an Earnings ESP of +0.35% and a Zacks Rank #3 at present.

Apple shares have moved down 3.7% in the past year. AAPL is set to report its first-quarter fiscal 2023 results on Feb 2.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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