Banking, finance, and taxes

What to Watch When Morgan Stanley Reports Thursday Morning

Wikimedia Commons

Morgan Stanley (NYSE: MS) is set to release its most recent quarterly results before the opening bell on Thursday. The consensus estimates are calling for $1.11 in earnings per share (EPS) and $9.63 billion in revenue. The third quarter of last year reportedly had $1.17 in EPS and $9.87 billion in revenue.

In the most recent quarter, management said that the company reported solid quarterly results across all its businesses. Firmwide revenues were over $10 billion, and Morgan Stanley produced a return on equity within its target range.

For the second quarter, book value per share was $44.13 and tangible book value per share was $38.44.

In terms of its business segments at that time, Morgan Stanley reported as follows:

  • Investment Banking revenues decreased 11% year over year to $1.59 billion.
  • Trading revenue decreased 17% to $2.73 billion.
  • Investments revenue increased by 200% to $441 million.
  • Commissions and Fees decreased by 6% to $979 million.
  • Asset Management revenue increased 1% to $3.22 billion.
  • Other revenue increased 4% to $253 million.

Excluding Wednesday’s move, Morgan Stanley had underperformed the broad markets, with its stock up only 7% year to date. In the past 52 weeks, the stock was actually down 2%.

Ahead of the report, a few analysts weighed in on stock:

  • Pritchard Capital has a Buy rating with a $48 price target.
  • Sandler O’Neill has a Buy rating and a $48 price target.
  • BMO Capital Markets has a Buy rating with a $69 target price.
  • Oppenheimer has a Buy rating with a $65 price target.
  • Citigroup’s Buy rating comes with a $52 target price.

Shares of Morgan Stanley were trading up nearly 1% at $42.85 on Wednesday, in a 52-week range of $36.74 to $48.67. The consensus price target is $52.77.


Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.