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MSCI Set to Report Q3 Earnings: What's in Store for the Stock?

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MSCI (MSCI - Free Report) is set to report its third-quarter 2024 results on Oct. 29, 2024.

For the third quarter of 2024, the Zacks Consensus Estimate for earnings is currently pegged at $3.77 per share, increased by a couple of pennies in the past 30 days. This indicates an increase of 9.28% 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 $713.69 million, suggesting an increase of 14.11% from the year-ago quarter’s reported figure.

MSCI Inc Price and EPS Surprise

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 5.01%.

Let’s see how things have shaped up for the upcoming announcement.

Factors Likely to Have Influenced Q3 Performance

MSCI’s third-quarter 2024 performance is expected to have benefited from its growing recurring revenues and global client base. Increasing integration of Climate and ESG solutions in the investment process is expected to have expanded its clientele in the to-be-reported quarter.

The established partnership with Moody’s (MCO - Free Report) in July to deliver MSCI’s ESG and sustainability data to a wider range of institutional clients has shown early success. The partnership with Moody 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 has been expanding its footprint among wealth managers thanks to its specialized analytics tool 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 in third quarter.

Recent acquisitions like Foxberry are expected to have enhanced MSCI’s ability to offer customized index solutions and expand its client-centric interactive capabilities. This acquisition is aimed at accelerating custom index production and providing simulation and back-testing capabilities, which are crucial for institutional investors.

MSCI’s 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. Fabric acquisition is likely to have expanded its footprint in the wealth management industry.

The Burgiss acquisition enhanced MSCI’s private asset capabilities, while Trove’s integration made it a leading provider of global intelligence on carbon credit. 

However, a tighter spending environment and longer sales cycles due to challenging macroeconomic conditions are expected to have 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 -1.08% 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 some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Reddit (RDDT - Free Report) has an Earnings ESP of +72.10% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Reddit shares have gained 55.9% year to date. RDDT is set to report its third-quarter 2024 results on Oct. 29.

Garmin (GRMN - Free Report) has an Earnings ESP of +1.03% and a Zacks Rank of #2 at present.

Garmin shares have gained 26% year to date. GRMN is set to report its third-quarter 2024 results on Oct. 30.


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