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Morgan Stanley Third Quarter Earnings
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MS
Morgan Stanley (NYSE:MS) announced its results for the most recent quarter on October 18, 2012. Morgan Stanley provides financial products and services to a group of clients and customers, including corporations, governments, financial institutions, and individuals.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: Can Earnings Guidance Accurately Predict The Future?
The Numbers: Both EPS and revenues failed to meet expectations as Morgan Stanley posted 55 cents per share and revenues of $5.29 billion. Analysts were expecting 34 cents per share and revenues of $7.7 billion. Revenue fell 46.1%, while EPS is down from the year-ago quarter's $1.14 per share. Morgan Stanley swung to a loss of $1 billion during the third quarter. Last quarter's net loss comes after the company reported a profit of 6 cents per share in the quarter prior.
Management Quote: James P. Gorman, Chairman and Chief Executive Officer, said, "Our third quarter results show a balanced, strategically focused franchise that has attained stronger revenues and executed on key goals. The rebound in Fixed Income & Commodities sales and trading indicates that clients have re-engaged after the uncertainty of the rating review in the previous quarter. We are beginning to unlock the full potential of the Global Wealth Management franchise, having increased our ownership of, and agreed on a purchase price for the rest of, Morgan Stanley Wealth Management. I am confident in our potential to enhance profitability and increase value for our shareholders in the quarters ahead."
Looking Ahead: Expectations for the company's next-quarter results are lower than they have been. Over the past 60 days, the average estimate for fourth quarter has fallen from 51 cents per share to 41 cents. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. At $1.27 per share, the average estimate for the fiscal year has fallen from $1.56 90 days ago.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: Can Earnings Guidance Accurately Predict The Future?
The Numbers: Both EPS and revenues failed to meet expectations as Morgan Stanley posted 55 cents per share and revenues of $5.29 billion. Analysts were expecting 34 cents per share and revenues of $7.7 billion. Revenue fell 46.1%, while EPS is down from the year-ago quarter's $1.14 per share. Morgan Stanley swung to a loss of $1 billion during the third quarter. Last quarter's net loss comes after the company reported a profit of 6 cents per share in the quarter prior.
Looking Ahead: Expectations for the company's next-quarter results are lower than they have been. Over the past 60 days, the average estimate for fourth quarter has fallen from 51 cents per share to 41 cents. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. At $1.27 per share, the average estimate for the fiscal year has fallen from $1.56 90 days ago.
by
Investopedia Staff
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