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MSCI (MSCI) Q3 Earnings Preview: What You Should Know Beyond the Headline Estimates

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Wall Street analysts expect MSCI (MSCI - Free Report) to post quarterly earnings of $3.77 per share in its upcoming report, which indicates a year-over-year increase of 9.3%. Revenues are expected to be $713.69 million, up 14.1% from the year-ago quarter.

Over the last 30 days, there has been an upward revision of 0.6% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

Bearing this in mind, let's now explore the average estimates of specific MSCI metrics that are commonly monitored and projected by Wall Street analysts.

The consensus estimate for 'Operating Revenues- ESG and Climate' stands at $82.15 million. The estimate points to a change of +12.5% from the year-ago quarter.

The combined assessment of analysts suggests that 'Operating Revenues- Asset-based fees - Total' will likely reach $163.89 million. The estimate indicates a change of +16.2% from the prior-year quarter.

The average prediction of analysts places 'Operating Revenues- Analytics' at $165.72 million. The estimate suggests a change of +7.4% year over year.

It is projected by analysts that the 'Operating Revenues- All Other - Private Assets' will reach $65.37 million. The estimate indicates a year-over-year change of +81.5%.

The collective assessment of analysts points to an estimated 'Period-End AUM in ETFs linked to MSCI equity indexes' of $1.70 billion. The estimate is in contrast to the year-ago figure of $1.32 billion.

The consensus among analysts is that 'Index Run Rate - Recurring subscriptions' will reach $906.51 million. The estimate is in contrast to the year-ago figure of $835.33 million.

Analysts expect 'Total Run Rate - Total recurring subscriptions' to come in at $2.20 billion. The estimate compares to the year-ago value of $1.92 billion.

According to the collective judgment of analysts, 'Total Retention Rate' should come in at 95.7%. Compared to the current estimate, the company reported 95.4% in the same quarter of the previous year.

Analysts predict that the 'Analytics Run Rate' will reach $685.88 million. The estimate compares to the year-ago value of $639.46 million.

Analysts forecast 'All Other - Private Assets Run Rate' to reach $265.12 million. Compared to the present estimate, the company reported $150.75 million in the same quarter last year.

Analysts' assessment points toward 'ESG and Climate Run Rate' reaching $342.95 million. Compared to the present estimate, the company reported $297.30 million in the same quarter last year.

Based on the collective assessment of analysts, 'Index Retention Rate' should arrive at 95.2%. Compared to the current estimate, the company reported 96.2% in the same quarter of the previous year.

View all Key Company Metrics for MSCI here>>>

Over the past month, MSCI shares have recorded returns of +6.1% versus the Zacks S&P 500 composite's +1.5% change. Based on its Zacks Rank #2 (Buy), MSCI will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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