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

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MSCI (MSCI - Free Report) is set to report fourth-quarter 2020 results on Jan 28.

The Zacks Consensus Estimate for fourth-quarter earnings has increased 2.1% to $1.98 per share over the past 30 days, suggesting 18.6% growth from the figure reported in the year-ago quarter.

The consensus mark for revenues is pegged at $444.7 million, indicating an increase of 9.4% from the year-ago quarter’s reported figure.

Notably, the company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 9.97%.
 

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

Robust adoption of MSCI’s solutions, driven by strong demand for cost-effective investment strategies with sustainable and risk-optimized returns, is expected to have driven top-line growth in the to-be-reported quarter.

MSCI’s strong recurring-revenue model is also expected to have driven top-line growth. Moreover, surging demand for custom and factor index modules and the increasing uptake of the company’s ESG solution in the investment process are expected to have benefited MSCI.

Notably, assets in ETFs linked to MSCI indexes increased 21.4% sequentially to $1.10 billion at the end of fourth-quarter 2020.

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 case here.

MSCI has an Earnings ESP of +0.00% 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 a few companies worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Littelfuse (LFUS - Free Report) 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.

Kulicke and Soffa (KLIC - Free Report) has an Earnings ESP of +11.03% and a Zacks Rank #1.

Snap (SNAP - Free Report) has an Earnings ESP of +6.06% and a Zacks Rank #2.

 

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