What to Expect From MSCI's Q4 2024 Earnings Report

New York-based MSCI Inc. (MSCI) provides critical decision support tools and solutions for the investment community to manage investment processes worldwide. Valued at $47.2 billion by market cap, the company produces indices and risk and return portfolio analytics for use in managing investment portfolios. The leading provider of investment decision-support tools and indices is expected to announce its fiscal fourth-quarter earnings for 2024 on Wednesday, Jan. 29. 

Ahead of the event, analysts expect MSCI to report a profit of $3.95 per share on a diluted basis, up 7.3% from $3.68 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. 

For the full year, analysts expect MSCI to report EPS of $14.99, up 10.9% from $13.52 in fiscal 2023. Its EPS is expected to rise 13.1% year over year to $16.96 in fiscal 2025. 

MSCI stock has underperformed the S&P 500’s ($SPX) 24.2% gains over the past 52 weeks, with shares up 10.9% during this period. Similarly, it underperformed the Financial Select Sector SPDR Fund’s (XLF) 27.6% gains over the same time frame.

MSCI's underperformance can be attributed to a constrained spending environment and prolonged sales cycles, driven by unfavorable macroeconomic conditions.

On Oct. 29, MSCI shares closed down more than 2% after reporting its Q3 results. Its adjusted EPS of $3.86 beat Wall Street expectations of $3.77. The company’s revenue was $724.7 million, beating Wall Street forecasts of $713.7 million.

Analysts’ consensus opinion on MSCI stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 19 analysts covering the stock, 12 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” four give a “Hold,” and one recommends a “Strong Sell.” MSCI’s average analyst price target is $86.35, indicating a potential upside of 10% from the current levels.