The quarterly results for MSCI Inc. (NYSE:MSCI) were released last week, making it a good time to revisit its performance. It was a credible result overall, with revenues of US$746m and statutory earnings per share of US$3.71 both in line with analyst estimates, showing that MSCI is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
We've discovered 1 warning sign about MSCI. View them for free.
Taking into account the latest results, the current consensus from MSCI's 16 analysts is for revenues of US$3.08b in 2025. This would reflect a credible 5.3% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 6.1% to US$15.66. Before this earnings report, the analysts had been forecasting revenues of US$3.09b and earnings per share (EPS) of US$15.81 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for MSCI
There were no changes to revenue or earnings estimates or the price target of US$616, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values MSCI at US$675 per share, while the most bearish prices it at US$520. This is a very narrow spread of estimates, implying either that MSCI is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that MSCI's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.2% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.2% annually. So it's pretty clear that, while MSCI's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$616, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for MSCI going out to 2027, and you can see them free on our platform here..
We don't want to rain on the parade too much, but we did also find 1 warning sign for MSCI that you need to be mindful of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.