Back to top

Image: Bigstock

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

Read MoreHide Full Article

MSCI (MSCI - Free Report) is set to report fourth-quarter 2021 results on Jan 27, 2022.

The Zacks Consensus Estimate for fourth-quarter earnings has increased 1.2% to $2.52 per share over the past 30 days, suggesting 28.6% growth from the figure reported in the year-ago quarter.

The consensus mark for revenues is pegged at $540 million, indicating an increase of 21.7% from the year-ago quarter’s reported figure.

Notably, 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 4.6%, 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 fourth-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 is expected to have driven growth in customer base in fourth-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 $1.45 trillion at the end of fourth-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 #2. 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:

Advanced Micro Devices (AMD - Free Report) has an Earnings ESP of +3.47% and is Zacks #2 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.

AMD shares have outperformed the Zacks Computer & Technology sector in the past year. AMD returned 23.7% compared with sector’s rally of 3.9%. The company is set to report fourth-quarter 2021 on Feb 1, 2022.

Apple (AAPL - Free Report) has an Earnings ESP of +2.89% and carries a Zacks Rank of 3, at present.

Apple returned 13% in the past year. The iPhone-maker is set to report first-quarter fiscal 2022 results on Jan 27, 2022.

Fabrinet (FN - Free Report) has an Earnings ESP of +0.91% and a Zacks Rank #3.

Fabrinet returned 34.3% in the past year. Fabrinet is set to report second-quarter fiscal 2022 results on Jan 31, 2022.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Apple Inc. (AAPL) - free report >>

Advanced Micro Devices, Inc. (AMD) - free report >>

MSCI Inc (MSCI) - free report >>

Fabrinet (FN) - free report >>

Published in