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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 2023 results on Jan 30.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $3.29 per share, unchanged in the past 30 days, suggesting 15.85% year-over-year growth.

The consensus mark for revenues is pegged at $657.16 million, indicating an increase of 14.05% year over year.

MSCI’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 5.2%.

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 Likely to Have Influenced Q4 Performance

MSCI’s fourth-quarter 2023 results are expected to have benefited from robust recurring revenues and the increasing integration of Climate and ESG solutions in the investment process.

MSCI’s focus on expanding into new areas like index services, analytics, ESG and Climate solutions and real assets is expected to have driven growth in its customer base in the to-be-reported quarter.

The company’s recent acquisition of Burgiss and Trove Research is expected to have enhanced its investment solutions to cater to diverse asset classes and align with market demands. These acquisitions are expected to make a positive contribution to MSCI's fourth-quarter performance.

The deal with Burgiss is expected to have contributed an estimated fourth-quarter revenues of $22-$24 million.

The Burgiss acquisition has enhanced MSCI's private asset capabilities, while Trove's integration is expected to have strengthened its position in the voluntary carbon market, bolstering MSCI's overall growth trajectory.

Ongoing market volatility, lower spending by clients and the negative impact of global economic uncertainties are expected to have hurt results in the to-be-reported quarter.

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. That’s the exact case here.

MSCI has an Earnings ESP of +1.13% 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 some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Meta Platform (META - Free Report) has an Earnings ESP of +1.46% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Meta Platform is set to announce fourth-quarter 2023 results on Feb 1. META’s shares have gained 0.2% in the past six months.

Twilio (TWLO - Free Report) has an Earnings ESP of +31.37% and a Zacks Rank #2.

Twilo is set to announce fourth-quarter 2023 results on Feb 14. TWLO’s shares have gained 18.7% in the past six months.

Bill Holdings (BILL - Free Report) has an Earnings ESP of +6.17% and a Zacks Rank #3.

Bill Holdings is set to announce second-quarter fiscal 2024 results on Feb 8. BILL’s shares have declined 38.4% in the past six months.

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

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