Valued at a market cap of $39.4 billion, MSCI Inc. (MSCI) provides critical decision support tools and solutions for the investment community to manage investment processes. The New York-based company’s support tools include indexes, portfolio construction and risk management products and services, Environmental, Social and Governance (ESG) research and ratings, and real estate research, reporting and benchmarking offerings. It is scheduled to announce its fiscal Q1 earnings for 2025 before the market opens on Tuesday, Apr. 22.
Ahead of this event, analysts expect this financial data company to report a profit of $3.88 per share, up 10.2% from $3.52 per share in the year-ago quarter. The company has exceeded Wall Street’s earnings estimates in each of the last four quarters. In Q4 2024, MSCI’s EPS of $4.18 surpassed the forecasted figure by 5.6%.
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For fiscal 2025, analysts expect MSCI to report a profit of $16.86 per share, up 10.9% from $15.20 in fiscal 2024. Furthermore, its EPS is expected to grow 12.9% year over year to $19.04 in fiscal 2026.
MSCI has declined 4.9% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 1.4% fall, and the Financial Select Sector SPDR Fund’s (XLF) 7.3% gain over the same time frame.
On Jan. 29, MSCI’s stock plunged 5.6% following its Q4 earnings release as the company delivered a mixed performance. Its adjusted earnings of $4.18 per share grew 13.6% year-over-year and exceeded Wall Street’s expectations of $3.96. However, its revenue, which came in at $743.5 million and grew 7.7% annually, slightly fell short of the consensus estimates. The top-line miss can be primarily attributed to a decline in non-recurring income, particularly within the Index segment. Further weighing on investor sentiment, its net income fell 24.3% from the year-ago quarter to $305.5 million. This decline was largely driven by a sharp increase in other expenses, which rose to $41.8 million, compared to a $97.1 million income recorded in the same quarter last year, primarily benefited by a non-taxable one-time gain.
Wall Street analysts are moderately optimistic about MSCI’s stock, with a "Moderate Buy" rating overall. Among 19 analysts covering the stock, 12 recommend "Strong Buy," two suggest “Moderate Buy,” four advise “Hold,” and one gives a “Strong Sell” rating. The mean price target for MSCI is $663.07, which indicates a notable 30.7% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
