What to Expect When Morgan Stanley Reports

Banking, finance, and taxes

Published: July 17, 2018 1:40 pm

Last Updated: January 11, 2020 8:53 pm

Morgan Stanley (NYSE: MS) is scheduled to release its second-quarter financial results before the markets open on Wednesday. Thomson Reuters consensus estimates call for $1.11 in earnings per share (EPS) on $10.1 billion in revenue. The same period of last year reportedly had $0.87 in EPS and $9.5 billion in revenue.

In the first quarter, Morgan Stanley reported a record profit, helped by a lower tax bill and a boost in revenue from the previous quarter’s volatile markets. At the same time, book value and tangible book value per common share were $39.19 and $34.04, respectively.

James P. Gorman, board chair and chief executive, commented in the prior report:

We delivered very strong results this quarter, with record revenues and net income – and an ROE above our target range. Each of our businesses performed well, with significant client engagement across our global franchise, and Sales and Trading a particular highlight in a more active environment.

Over the past 52 weeks, Morgan Stanley has underperformed the broad markets, with its stock up about 8%. In 2018 alone, the stock is down 7%.

A few analysts weighed in on Morgan Stanley before the report:

Sandler O’Neill has a Hold rating and a $51 price target.
CFRA has a Buy rating with a $65 price target.
JPMorgan has a Buy rating with a $60 target price.
Barclays has an Equal Weight rating with a $63 price target.
Credit Suisse has an Outperform rating with a $62 target.

Shares of Morgan Stanley were last seen trading at $49.02, with a consensus analyst price target of $59.68 and in a 52-week range of $43.84 to $59.38.