MSCI
MSCI
is set to report
second-quarter 2022
results on Jul 26.
The Zacks Consensus Estimate for second-quarter earnings has decreased by a couple of cents to $2.71 per share over the past 30 days, suggesting 10.61% growth from the figure reported in the year-ago quarter.
The consensus mark for revenues is pegged at $561.71 million, indicating an increase of 12.75% from the year-ago quarter’s reported figure.
Notably, the company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in one, the earnings surprise being 5.07%, on average.
Let’s see how things are shaping up for the upcoming announcement.
Factors to Note
MSCI’s second-quarter 2022 results are expected to have benefited from the increasing uptake of climate and ESG solutions in the investment process.
Expanding usage of ESG tools bodes well for MSCI. Retention rate for ESG and Climate tools hit an all-time high of 98.7% in first-quarter 2022, reflecting strong demand for the company’s solutions.
MSCI’s expanding portfolio of climate tools has been noteworthy. In the first quarter, the company calculated implied temperature rise metrics for more than 10,000 issuers and nearly 134,000 funds.
Moreover, in ESG ratings and Climate metrics, MSCI now covers more than 9.5 million instruments across equities and fixed income, including ETFs, corporate and government bonds, bank loans, and derivatives.
The company’s focus on expanding into new areas like Wealth Management, Insurers, Derivatives, case funds, broker dealers, and ESG & Climate is expected to have driven growth in its customer base in the to-be-reported quarter.
In first-quarter 2022, new client relationships formed roughly 50% of new subscription sales in the ESG and Climate ratings and research segment.
MSCI’s strong recurring-revenue model has been a key catalyst. Notably, assets under management in Equity ETFs linked to MSCI indexes were $1.19 trillion at the end of second-quarter 2022.
What Our Model Says
Per the Zacks model, the combination of a positive
Earnings ESP
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
MSCI has an Earnings ESP of -0.37% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
Stocks to Consider
Here are a few other companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Aspen Technology
AZPN
has an Earnings ESP of +1.40% and carries a Zacks Rank of 2, at present. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Aspen shares are up 18.6% year to date. AZPN is set to report fourth-quarter fiscal 2022 results on Aug 8.
Fastly
FSLY
has an Earnings ESP of +8.40% and is Zacks #2 Ranked.
Fastly shares have declined 65.9% on a year-to-date basis. The company is set to report second-quarter 2022 results on Aug 3.
DigitalOcean
DOCN
has an Earnings ESP of +6.94% and a Zacks Rank #2.
DigitalOcean shares are down 47.8% year to date. DOCN is set to report second-quarter fiscal 2022 results on Aug 8.
Stay on top of upcoming earnings announcements with the
Zacks Earnings Calendar
.
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