Investment analytics provider MSCI (NYSE:MSCI) will be reporting results this Tuesday before market hours. Here’s what to expect.
MSCI met analysts’ revenue expectations last quarter, reporting revenues of $867 million, up 12.2% year on year. It was a mixed quarter for the company, with a miss of analysts’ EBITDA estimates.
Is MSCI a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting MSCI’s revenue to grow 11.7% year on year, improving from the 9.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. MSCI has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at MSCI’s peers in the capital markets segment, some have already reported their Q3 results, giving us a hint as to what we can expect. FactSet delivered year-on-year revenue growth of 6.3%, beating analysts’ expectations by 0.8%, and Goldman Sachs reported revenues up 23%, topping estimates by 11.5%. FactSet traded up 6.8% following the results while Goldman Sachs was down 1.8%.
Read our full analysis of FactSet’s results here and Goldman Sachs’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the capital markets stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.2% on average over the last month. MSCI is up 1.8% during the same time and is heading into earnings with an average analyst price target of $672.94 (compared to the current share price of $568.86).
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