MSCI to Report First-Quarter Earnings: What's in the Cards?

MSCI MSCI is set to report first-quarter 2021 results on Apr 27.

The Zacks Consensus Estimate for first-quarter earnings has increased 0.9% to $2.29 per share over the past 30 days, suggesting 20.5% growth from the figure reported in the year-ago quarter.

The consensus mark for revenues is pegged at $471.2 million, indicating an increase of 13.1% from the year-ago quarter’s reported figure.

Notably, the company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing in one, the earnings surprise being 9.1%, on average.

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 are shaping up for the upcoming announcement.

Factors to Note

MSCI’s first-quarter 2021 results are expected to have benefited from surging demand for custom and factor index modules. The increasing uptake of the company’s ESG solution in the investment process is also expected to have benefited top-line growth.

MSCI’s strong recurring-revenue model has been a key catalyst. The Zacks Consensus Estimate for Index Recurring Subscription Run Rate is pegged at $632 million, indicating growth of 10.1% year over year.

The company’s growing clientele base has been a major growth driver. Markedly, at the end of the fourth quarter, MSCI had more than 80 corporate clients for its ESG and climate offerings, which is expected to have expanded further in the to-be-reported quarter.

MSCI’s focus on expanding into new areas like Wealth Management, Insurers, Derivatives, ESG & Climate, Core Europe and China are expected to have driven growth in customer base in first-quarter 2021.

Notably, assets under management in Equity ETFs linked to MSCI indexes increased 9.6% sequentially to $1.21 trillion at the end of first-quarter 2021.

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.

MSCI has an Earnings ESP of +2.49% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are a few other companies worth considering as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases:

Etsy ETSY has an Earnings ESP of +5.02% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AMETEK AME has an Earnings ESP of +0.49% and a Zacks Rank #2.

Avnet AVT has an Earnings ESP of +0.89% and a Zacks Rank #2.

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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.

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