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Morgan Stanley Second Quarter Earnings
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MS
Morgan Stanley (NYSE:MS) announced its results for the most recent quarter on July 19, 2012. Morgan Stanley provides financial products and services to a group of clients and customers, including corporations, governments, financial institutions, and individuals.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: How To Decode A Company's Earnings Reports
The Numbers: Both EPS and revenues failed to meet expectations as Morgan Stanley posted 29 cents per share and revenues of $6.95 billion. Analysts were expecting 44 cents per share and revenues of $7.7 billion. Morgan Stanley's net income for the second quarter fell 50.5% from last year's figures to $591 million. The company's profit in the latest quarter comes after losses in the previous two quarters. In the first, Morgan Stanley reported a net loss of $94 million while losses totaled $250 million in the fourth quarter of the last fiscal year.
Looking Ahead: Over the past 60 days, the outlook for the company's performance next quarter has become increasingly unfavorable. The average estimate for the third quarter is 38 cents per share, a drop from 45 cents. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. The average estimate for the fiscal year is $1.31 per share, down from $1.97 90 days ago.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: How To Decode A Company's Earnings Reports
The Numbers: Both EPS and revenues failed to meet expectations as Morgan Stanley posted 29 cents per share and revenues of $6.95 billion. Analysts were expecting 44 cents per share and revenues of $7.7 billion. Morgan Stanley's net income for the second quarter fell 50.5% from last year's figures to $591 million. The company's profit in the latest quarter comes after losses in the previous two quarters. In the first, Morgan Stanley reported a net loss of $94 million while losses totaled $250 million in the fourth quarter of the last fiscal year.
Looking Ahead: Over the past 60 days, the outlook for the company's performance next quarter has become increasingly unfavorable. The average estimate for the third quarter is 38 cents per share, a drop from 45 cents. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. The average estimate for the fiscal year is $1.31 per share, down from $1.97 90 days ago.
by
Investopedia Staff
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