Morgan Stanley Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Morgan Stanley (NYSE:MS) will unveil its latest earnings tomorrow, Friday, January 18, 2013. Morgan Stanley provides financial products and services to a group of clients and customers, including corporations, governments, financial institutions, and individuals.

Morgan Stanley Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 29 cents per share, up from a loss of 14 cents in the year-earlier quarter. During the past three months, the average estimate has moved down from 35 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 33 cents during the last month. For the year, analysts are projecting net loss of 5 cents per share, a spike from net income of $1.26 last year.

Last quarter, the company came in at profit of 28 cents per share against a mean estimate of net income of 24 cents per share, beating estimates after missing them in the previous quarter. In the second quarter, it missed forecasts by 27 cents.

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A Look Back: In the third quarter, the company swung to a loss of $1.02 billion (55 cents a share) from a profit of $2.2 billion ($1.15) a year earlier, but beat analyst expectations. Revenue fell 40.7% to $6.83 billion from $11.5 billion.

Here’s how Morgan Stanley traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


Wall St. Revenue Expectations: On average, analysts predict $7.07 billion in revenue this quarter, a rise of 23.8% from the year-ago quarter. Analysts are forecasting total revenue of $27.07 billion for the year, a decline of 16.5% from last year’s revenue of $32.4 billion.

Analyst Ratings: With 11 analysts rating the stock as a buy, three rating it as a sell and eight rating it as a hold, there are indications of a bullish outlook.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 26.3% in the fourth quarter of the last fiscal year, 10% in first quarter and 25.4% in the second quarter and then fell again in the third quarter.

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