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MSCI Set to Report Q1 Earnings: Will It Deliver a Beat?

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MSCI (MSCI - Free Report) is set to report first-quarter 2022 results on Apr 26.

The Zacks Consensus Estimate for first-quarter earnings has increased by a penny to $2.78 per share over the past 30 days, suggesting 13.01% growth from the figure reported in the year-ago quarter.

The consensus mark for revenues is pegged at $555.05 million, indicating an increase of 16.02% 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 and missed the same in one, the earnings surprise being 4.74%, 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 first-quarter 2022 results are expected to have benefited from the increasing uptake of climate and ESG solutions in the investment process. Top-line growth is expected to reflect strong demand for custom and factor index modules.

MSCI’s expanding portfolio of climate tools has been noteworthy. Availability of carbon emissions data for more than 15,000 private companies and nearly 4,000 active private equity and debt funds, in addition to carbon emission data it provides on nearly 10,000 public companies, has been a key catalyst driving demand for these tools.

Strong adoption of climate data insights, physical and transition risk models, implied temperature rise measures, net zero tracker, and TCFD-aligned and other reporting tools is expected to have driven top-line growth in the to-be-reported quarter.

The company’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 the customer base in the to-be-reported quarter.

MSCI’s strong recurring-revenue model has been a key catalyst. Notably, assets under management in Equity ETFs linked to MSCI indexes were $1.39 trillion at the end of first-quarter 2022.

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 0.00% 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 too have the right combination of elements to beat on earnings in their upcoming releases:

Apple (AAPL - Free Report) has an Earnings ESP of +1.78% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Apple shares are down 5.8% year to date. The iPhone-maker is set to report second-quarter fiscal 2022 results on Apr 28.

CDW (CDW - Free Report) has an Earnings ESP of +0.17% and is Zacks #2 Ranked.

CDW shares have declined 12.6% on a year-to-date basis. The company is set to report first-quarter 2022 results on May 4.

Fabrinet (FN - Free Report) has an Earnings ESP of +0.87% and a Zacks Rank #2.

Fabrinet shares are down 13.3% year to date. Fabrinet is set to report third-quarter fiscal 2022 results on May 2.


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