MSCI (MSCI) Q2 Earnings Report Preview: What To Look For
Investment analytics provider MSCI (NYSE:MSCI) will be reporting results this Tuesday before market hours. Here’s what to expect.
MSCI beat analysts’ revenue expectations last quarter, reporting revenues of $850.8 million, up 14.1% year on year. It was a satisfactory quarter for the company, with a narrow beat 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 12.5% year on year, improving from the 9.1% 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 Q2 results, giving us a hint as to what we can expect. FactSet delivered year-on-year revenue growth of 6.4%, beating analysts’ expectations by 1.1%, and Goldman Sachs reported revenues up 39.5%, topping estimates by 23.7%. FactSet traded up 8.7% following the results while Goldman Sachs was also up 9.9%.
Read our full analysis of FactSet’s results here and Goldman Sachs’s results here.
There has been positive sentiment among investors in the capital markets segment, with share prices up 6.9% on average over the last month. MSCI is up 8.3% during the same time and is heading into earnings with an average analyst price target of $703.41 (compared to the current share price of $628.83).
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