Advertisement
Singapore markets closed

  • Straits Times Index

    3,176.51
    -11.15 (-0.35%)
     

  • Nikkei

    37,068.35
    -1,011.35 (-2.66%)
     

  • Hang Seng

    16,224.14
    -161.73 (-0.99%)
     

  • FTSE 100

    7,895.85
    +18.80 (+0.24%)
     

  • Bitcoin USD

    64,264.61
    +969.55 (+1.53%)
     

  • CMC Crypto 200

    1,383.97
    +71.35 (+5.44%)
     

  • S&P 500

    4,956.86
    -54.26 (-1.08%)
     

  • Dow

    37,917.79
    +142.41 (+0.38%)
     

  • Nasdaq

    15,240.67
    -360.83 (-2.31%)
     

  • Gold

    2,409.30
    +11.30 (+0.47%)
     

  • Crude Oil

    83.21
    +0.48 (+0.58%)
     

  • 10-Yr Bond

    4.6150
    -0.0320 (-0.69%)
     

  • FTSE Bursa Malaysia

    1,547.57
    +2.81 (+0.18%)
     

  • Jakarta Composite Index

    7,087.32
    -79.50 (-1.11%)
     

  • PSE Index

    6,443.00
    -80.19 (-1.23%)
     

MSCI (MSCI) to Report Q4 Earnings: What's in the Cards?

Zacks Equity Research

MSCI Inc. MSCI is set to report fourth-quarter 2019 results on Jan 30.

The Zacks Consensus Estimate for fourth-quarter earnings has been steady at $1.62 over the past 30 days, indicating growth of 23.7% from the year-ago quarter’s reported figure.

The consensus mark for revenues is currently pegged at $402.7 million, which implies growth of 11.4% from the figure reported in the year-ago quarter.

The company beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average positive surprise of 4.9%.

Let’s see how things have shaped up prior to this announcement.

MSCI Inc Price and EPS Surprise

MSCI Inc Price and EPS Surprise
MSCI Inc Price and EPS Surprise

MSCI Inc price-eps-surprise | MSCI Inc Quote

ADVERTISEMENT

Key Factors to Consider

MSCI is likely to have benefited from its strong portfolio of offerings. Robust adoption of its solutions, driven by strong demand for cost-effective investments strategies with sustainable and risk-optimized returns, is expected to have driven top-line growth in the to-be-reported quarter.

Moreover, MSCI’s open architecture approach, which enables it to integrate content from any third-party application, is likely to have driven user growth as it allows clients to access content from anywhere.

Notably, the company secured a number of clients during the quarter, which include major U.S. universities, asset management firms and insurers, among others.

Additionally, MSCI’s continued investments in Analytics technology as well as developing new indices like the MSCI ACWI IMI Smart Cities Index and MSCI Climate Change Index for its clients is expected to have driven clientele.

The company also renewed its strategic alliance with Eurex to extend the terms of their license agreement for the existing MSCI index futures listed in Europe as well expand the agreement to include MSCI ESG indices.

However, expenses pertaining to the company’s acquisition of Carbon Delta are expected to have been a drag on its bottom line.

Q4 Development

MSCI extended its relationship with Blackrock for another 10 years. The renewed contract will reduce the license fee rate for ETFs with total expense ratios (TERs) below certain levels.

Moreover, all future reductions by BlackRock in the TERs of licensed BlackRock ETFs will reduce the license fee rates payable to MSCI but raise the possibility of incremental assets flowing into licensed BlackRock ETFs.

The renewed contract is expected to align their opportunities and successes and maximize long-term revenue growth for Blackrock.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of a positive earnings surprise.

MSCI carries a Zacks Rank #2 and has an Earnings ESP of +0.62%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks That Warrant a Look

Here are some companies, which, per our model, also have the right combination of elements to post an earnings beat this quarter:

Advanced Energy Industries AEIS has an Earnings ESP of +10.8% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

CEVA, Inc CEVA has an Earnings ESP of +27.06% and a Zacks Rank #1.

Perion Network Ltd PERI has an Earnings ESP of +22.58% and a Zacks Rank #1.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained an impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.

This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.

See their latest picks free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
MSCI Inc (MSCI) : Free Stock Analysis Report
 
Perion Network Ltd (PERI) : Free Stock Analysis Report
 
CEVA, Inc. (CEVA) : Free Stock Analysis Report
 
Advanced Energy Industries, Inc. (AEIS) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research