Banking & Finance

What to Watch When Morgan Stanley Reports Thursday Morning

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.