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With a market cap of $48 billion, MSCI Inc. (MSCI) operates in the financial services sector and provides investment decision support tools. The New York-based company offers indexes, analytics, ESG research, and private assets solutions to help investors manage portfolios and assess risks globally. It is expected to unveil its fiscal Q3 earnings results before the market opens on Tuesday, Oct. 29.
Before the event, analysts anticipate the maker of software tools for portfolio managers to report a profit of $3.76 per share, up nearly 9% from $3.45 per share in the same quarter last year. The company has consistently surpassed Wall Street's earnings projections in the past four quarters. MSCI exceeded the consensus estimate by a 2.3% margin in the last reported quarter.
For fiscal 2024, analysts expect MSCI to report EPS of $14.82, up 9.6% from $13.52 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to surge by a 13.4% margin, reaching $16.80.
On a YTD basis, MSCI's shares have risen 7.4%, underperforming the S&P 500 Index's ($SPX) 22.9% gain and the Financial Select Sector SPDR Fund's (XLF) 24.5% increase over the same period.
MSCI shares surged 7.9% on Jul. 23 due to stronger-than-expected Q2 adjusted earnings of $3.64 per share and revenue of $707.9 million. The company's recurring subscription revenue rose 14.4%, and its index segment grew nearly 10%, driven by increased client spending on risk-hedging and analytics services. Investor optimism around a "soft landing" for the economy further contributed to the boost in demand for MSCI's products.
Analysts' consensus rating on MSCI stock is cautiously optimistic, with a "Moderate Buy" overall rating. Out of 19 analysts covering the stock, opinions include 10 "Strong Buys," two "Moderate Buys," six "Holds," and one "Strong Sell." This consensus is more bullish than three months ago, with six “Strong Buy” ratings on the stock.
The average analyst price target for MSCI is $618.64, suggesting a potential upside of only 1.9% from current levels.
On the date of publication, Sohini Mondal 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.
