MSCI(MSCI) ZACKS·2025-04-17 20:00Core Viewpoint - MSCI is expected to report its first-quarter 2025 results on April 22, with earnings estimated at 739.69 million, indicating an 8.78% rise from the previous year [1][3]. Group 1: Earnings and Revenue Expectations - The Zacks Consensus Estimate for MSCI's earnings has declined by a penny in the past 30 days, but still shows a positive year-over-year growth [1]. - The revenue consensus suggests a significant increase compared to the same quarter last year, highlighting strong performance expectations [1]. Group 2: Recent Performance Trends - MSCI has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 3.13% [2]. - The company's performance is anticipated to benefit from growing recurring revenues and an expanding global client base, particularly due to the integration of Climate and ESG solutions [3]. Group 3: Strategic Partnerships and Product Offerings - The partnership with Moody's is expected to enhance MSCI's ESG segment growth, particularly in Europe and Asia, contributing positively to the upcoming quarter's performance [4]. - MSCI's specialized analytics tool for wealth managers is likely to support its growth by addressing portfolio customization needs [5]. - Demand for custom indices and specialized portfolio construction tools remains strong, aided by the integration of the Foxberry F9 platform into MSCI's product suite [6]. Group 4: Challenges and Headwinds - MSCI faces challenges from foreign exchange fluctuations and cyclical pressures in certain asset manager segments, which may impact revenue growth [7]. - Cancellations in the real assets segment due to client events and vendor consolidations are also expected to affect performance in the upcoming quarter [7]. Group 5: Earnings ESP and Zacks Rank - According to the Zacks model, MSCI has an Earnings ESP of -0.61% and a Zacks Rank of 3, indicating lower odds of an earnings beat compared to other stocks [8].