MSCI Inc. (NYSE:MSCI) shareholders are probably feeling a little disappointed, since its shares fell 3.0% to US$531 in the week after its latest quarterly results. MSCI reported in line with analyst predictions, delivering revenues of US$746m and statutory earnings per share of US$3.71, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
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Taking into account the latest results, the consensus forecast from MSCI's 16 analysts is for revenues of US$3.07b in 2025. This reflects a modest 5.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 5.6% to US$15.58. Before this earnings report, the analysts had been forecasting revenues of US$3.08b and earnings per share (EPS) of US$15.79 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
View our latest analysis for MSCI
The analysts reconfirmed their price target of US$616, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on MSCI, with the most bullish analyst valuing it at US$675 and the most bearish at US$520 per share. 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.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. 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 7.0% 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 5.4% 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 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.
With that in mind, we wouldn't be too quick to come to a conclusion on MSCI. Long-term earnings power is much more important than next year's profits. 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..
You should always think about risks though. Case in point, we've spotted 1 warning sign for MSCI you should be aware of.
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