Earnings

Morgan Stanley shares rise after fourth-quarter profit tops estimates

In this article

James Gorman, chairman and chief executive officer of Morgan Stanley, speaks during a Bloomberg Television interview in Beijing, China, on Thursday, May 30, 2019.
Giulia Marchi | Bloomberg | Getty Images

Morgan Stanley is set to report fourth-quarter earnings before the opening bell on Wednesday.

Here’s what Wall Street expects:

  • Earnings: $1.91 a share, 5.4% higher than a year earlier, according to Refinitiv
  • Revenue: $14.6 billion, 7% higher than a year earlier
  • Wealth management: $6.28 billion, according to StreetAccount
  • Trading: Equities $2.44 billion, Fixed Income $1.47 billion
  • Investment Banking: $2.54 billion

How will Morgan Stanley navigate the next phase in markets?

That’s a key question as analysts look ahead to when trading and deal-making cools off from a red-hot two years.

Trading in particular has begun to return to more normal volumes, if results from Goldman Sachs and JPMorgan Chase are any indication. Morgan Stanley has the No. 1 ranked equities trading business globally.

It’s also a top player in mergers advice, particularly in the technology and communications realms.

One area that should prove resilient is wealth management, which typically relies on fees based on assets under management that have been climbing along with rising markets.

Shares of the bank have dropped 4.2% this year, underperforming the 8.6% gain of the KBW Bank Index.

JPMorgan and Citigroup each reported the smallest earnings beats in the last seven quarters, and Goldman Sachs missed estimates for fourth quarter profit because of elevated expenses. Wells Fargo has been the sole bright spot so far in bank earnings after it gave targets for higher interest income and lower expenses.  

This story is developing. Please check back for updates.

Products You May Like

Articles You May Like

Charts suggest it’s ‘way too early’ to expect the stock market to rebound, Jim Cramer says
How to Build Credit for Your Business
Stocks making the biggest moves midday: Twitter, Poshmark, Rivian and more
Here’s how we determine the FA 100 ranking for 2022
Spacecraft builder York sells stake to private equity firm AEI at over $1 billion valuation

Leave a Reply

Your email address will not be published.