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

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MSCI (MSCI - Free Report) is set to report second-quarter 2021 results on Jul 27.

The Zacks Consensus Estimate for second-quarter earnings has increased 0.4% to $2.31 per share over the past 30 days, suggesting 30.5% growth from the figure reported in the year-ago quarter.

The consensus mark for revenues is pegged at $486.3 million, indicating an increase of 18.7% 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 7.7%, 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 second-quarter 2021 results are expected to have benefited from the increasing uptake of ESG solutions in the investment process.

The company’s focus on expanding into new areas like Wealth Management, Insurers, Derivatives, ESG & Climate, Core Europe and China are expected to have driven growth in customer base in second-quarter 2021.

Surging demand for custom and factor index modules is expected to have benefited top-line growth.

MSCI’s strong recurring-revenue model has been a key catalyst. The Zacks Consensus Estimate for Index Recurring Subscription Run Rate is pegged at $650 million, indicating growth of 10.7% year over year.

Assets under management in Equity ETFs linked to MSCI indexes were $1.21 trillion at the end of second-quarter 2021, unchanged year over year.

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 +2.78% 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:

Apple (AAPL - Free Report) has an Earnings ESP of +3.40% and is Zacks #2 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.

Amphenol (APH - Free Report) has an Earnings ESP of +0.43% and carries a Zacks Rank of 2, at present.

Carrier Global (CARR - Free Report) has an Earnings ESP of +2.57% and a Zacks Rank #2.

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