MSCI Inc. Earnings Report Anticipated Amidst Mixed Performance

With a market capitalization of $39.4 billion, MSCI Inc. (MSCI) is a vital provider of decision support tools and solutions for investors. Headquartered in New York, the company’s offerings include indexes, portfolio construction, risk management products, Environmental, Social, and Governance (ESG) research and ratings, as well as real estate research, reporting, and benchmarking services. MSCI is set to announce its fiscal Q1 earnings for 2025 before the markets open on Tuesday, April 22.

Analysts Expect Strong Performance for Q1 2025

Ahead of this earnings announcement, analysts forecast that MSCI will report a profit of $3.88 per share, reflecting a 10.2% increase from the $3.52 per share recorded in the same quarter last year. The company has consistently outperformed Wall Street earnings estimates for the past four quarters, including a Q4 2024 EPS of $4.18 that exceeded expectations by 5.6%.

Full-Year Projections Point to Continued Growth

For the entire fiscal year of 2025, analysts project MSCI will earn $16.86 per share, a 10.9% increase compared to $15.20 in fiscal 2024. Looking ahead, EPS is expected to rise by 12.9% year over year to $19.04 in fiscal 2026.

Stock Performance and Market Context

Over the past year, MSCI’s stock has declined by 4.9%, underperforming the S&P 500 Index’s slight decrease of 1.4% and the Financial Select Sector SPDR Fund’s (XLF) increase of 7.3% in the same period. This context highlights the challenges faced by the company amidst broader market movements.

Recent Earnings Report Highlights

On January 29, following the release of its Q4 earnings, MSCI’s stock experienced a 5.6% drop due to mixed results. While adjusted earnings reached $4.18 per share—a 13.6% annual increase that exceeded Wall Street’s expectations of $3.96—the company’s revenue of $743.5 million, which grew 7.7% year-over-year, fell short of consensus estimates. This revenue shortfall primarily stemmed from a decline in non-recurring income, particularly in the Index segment. Additionally, MSCI reported a net income decrease of 24.3% to $305.5 million, largely attributed to a significant rise in other expenses, totaling $41.8 million compared to a $97.1 million income recorded the previous year, which was influenced by a non-taxable one-time gain.

Analyst Sentiment and Future Outlook

Wall Street analysts maintain a “Moderate Buy” rating for MSCI’s stock, indicating a cautiously optimistic outlook. Among 19 analysts covering the company, 12 recommend a “Strong Buy,” two suggest “Moderate Buy,” four recommend “Hold,” and one issues a “Strong Sell” rating. The average price target for MSCI stands at $663.07, suggesting a substantial potential upside of 30.7% from current levels.

On the date of publication, Neharika Jain did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

 

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