Morgan Stanley Earnings: WEAK Revenue and Profit

S&P 500 (NYSE:SPY) component Morgan Stanley (NYSE:MS) posted a decrease in profit as revenue declined. Morgan Stanley provides financial products and services to a group of clients and customers, including corporations, governments, financial institutions, and individuals.

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Morgan Stanley Earnings Cheat Sheet for the Second Quarter

Results: Net income for Morgan Stanley fell to $591 million (29 cents per share) vs. $1.19 billion (38 cents per share) a year earlier. This is a decline of 50.5% from the year-earlier quarter.

Revenue: Fell 24.5% to $6.95 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Morgan Stanley fell short of the mean analyst estimate of 44 cents per share. It fell short of the average revenue estimate of $7.7 billion.

Key Stats:

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the first quarter, it topped the mark by 25 cents, and in the fourth quarter of the last fiscal year, it was ahead by 44 cents.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 45 cents a share to 38 cents over the last ninety days. At $1.31 per share, the average estimate for the fiscal year has fallen from $1.97 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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