Morgan Stanley Q2 revenue beats estimates

Morgan Stanley

Morgan Stanley

MS

0.00


Overview

  • U.S. financial services firm's Q2 revenue rose, beating analyst expectations

  • Adjusted EPS for Q2 rose to $3.46, up from $2.13 a year ago

  • Company repurchased $1.5 bln in stock, board approved new $20 bln buyback program


Outlook

  • Morgan Stanley did not provide specific guidance for future quarters or the full year in the press release


Result Drivers

  • INSTITUTIONAL SECURITIES - Record net revenues driven by strong performance in equity and investment banking, with notable strength in client engagement and favorable market conditions

  • WEALTH MANAGEMENT - Net revenues rose on higher asset management fees, robust client activity, and net new assets of $148 bln

  • INVESTMENT MANAGEMENT - Net revenues increased due to higher average AUM and positive flows


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Beat

$21.30 bln

$19.64 bln (14 Analysts)

Q2 EPS

$3.46

Q2 Net Income

$5.60 bln

Q2 Provision for Credit Losses

$98 mln

Q2 Return on Equity

20.70%

Q2 Standardized Common Equity Tier 1 capital ratio

14.80%


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 12 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the investment banking & brokerage services peer group is "buy"

  • Wall Street's median 12-month price target for Morgan Stanley is $225.00, about 1.2% below its July 14 closing price of $227.67

  • The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 14 three months ago


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