MSCI MSCI is set to report its second-quarter 2024 results on Jul 23.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $3.56 per share, up by a penny in the past 30 days and suggesting 9.2% year-over-year growth.
The consensus mark for revenues is pegged at $697.24 million, indicating an increase of 12.25% year over year.
MSCI’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 5.57%.
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 Q2 Performance
MSCI’s second-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 clientele in the to-be-reported quarter.
Expanding custom index capabilities bode well for MSCI’s prospects. Top-line growth in the quarter to be reported is expected to have benefited from strong demand for client-designed indexing tools on MSCI ONE.
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 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 acquisition of Burgiss and Trove Research are 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, ongoing market volatility, lower spending by clients, persistent inflation and challenging global 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 -0.44% and a Zacks Rank #2 (Buy). 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:
Arista Networks ANET has an Earnings ESP of +0.95% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks’ shares have gained 43% year to date. ANET is set to report its second-quarter 2024 results on Jul 30.
Meta Platforms META has an Earnings ESP of +1.35% and a Zacks Rank of #3 at present.
Meta Platforms’ shares have gained 30.5% year to date. META is set to report its second-quarter 2024 results on Jul 31.
GoDaddy GDDY has an Earnings ESP of +13.08% and a Zacks Rank #3.
GoDaddy’s shares have gained 35.9% year to date. GDDY is set to report its second-quarter 2024 results on Aug 1.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
