MSCI MSCI is set to report its fourth-quarter 2024 results on Jan. 29, 2025.
For the fourth quarter of 2024, the Zacks Consensus Estimate for earnings is currently pegged at $3.96 per share, which increased by a penny in the past 30 days. This indicates an increase of 7.61% from the figure reported in the year-ago quarter.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar
The consensus mark for revenues is pegged at $744.46 million, suggesting an increase of 7.88% from the year-ago quarter’s reported figure.
MSCI Inc Price and EPS Surprise
MSCI Inc price-eps-surprise | MSCI Inc Quote
MSCI’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 4.71%.
Let’s see how things have shaped up for the upcoming announcement.
Factors Likely to Have Influenced Q4 Performance
MSCI’s fourth-quarter 2024 performance is expected to have benefited from its growing recurring revenues and global client base. The increasing integration of Climate and ESG solutions in the investment process is expected to have expanded clientele in the to-be-reported quarter.
The established partnership with Moody’s MCO to deliver MSCI’s ESG and sustainability data to a wider range of institutional clients has shown early success. The partnership with Moody’s is expected to have contributed to the ESG segment’s organic growth rate in the to-be-reported quarter, especially in Europe and Asia.
MSCI’s partnership with Microsoft MSFT has further expanded its clientele and is considered a major positive for the company.
The partnership with Microsoft aims to enhance the global investment industry by leveraging Microsoft’s cloud and AI technologies to modernize MSCI’s products and drive ESG solutions. Benefits from this partnership are likely to have been reflected in the to-be-reported quarter.
MSCI has been expanding its footprint among wealth managers thanks to its specialized analytics tool, which is designed to address the needs of portfolio customization. This is likely to have acted as a tailwind for the company.
MSCI’s new MSCI AI Portfolio Insights tool, which combines AI with analytical tools to improve investment risk assessment, has gained traction. Increased interest from clients, particularly hedge funds, in these AI-enhanced analytics tools is expected to have benefited the company’s performance in the fourth quarter.
The launch of MSCI’s Private Capital Fund Indices in the third quarter of 2024, covering over 13,000 funds and $11 trillion in assets under management, has created new opportunities for client wins in the private markets segment. This expansion into private capital is likely to have strengthened MSCI’s market position in the to-be-reported quarter.
However, a tighter spending environment and longer sales cycles due to challenging macroeconomic conditions are expected to hurt top-line growth 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. But that’s not the exact case here.
MSCI has an Earnings ESP of -0.26% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
A Stock to Consider
Here is a company worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
BILL Holdings BILL has an Earnings ESP of +29.71% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
BILL Holdings shares have gained 77.4% over the past six-month period. BILL is set to report its second-quarter fiscal 2025 results on Feb. 06.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpMicrosoft Corporation (MSFT) : Free Stock Analysis Report
Moody's Corporation (MCO) : Free Stock Analysis Report
MSCI Inc (MSCI) : Free Stock Analysis Report
BILL Holdings, Inc. (BILL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
