Morgan Stanley Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Morgan Stanley (NYSE:MS) will unveil its latest earnings on Thursday, January 19, 2012. 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 a loss of 58 cents per share, a swing from profit of 43 cents in the year earlier quarter. During the past three months, the average estimate has moved down from 44 cents. Between one and three months ago, the average estimate moved down. It also has dropped from breaking even during the last month. For the year, analysts are projecting net income of 72 cents per share, a decline of 70.5% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 80 cents, reporting profit of $1.14 per share against a mean estimate of net income of 34 cents per share.

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Wall St. Revenue Expectations: Analysts are projecting a decline of 28.7% in revenue from the year-earlier quarter to $5.57 billion.

Analyst Ratings: 12 out of 21 analysts surveyed (57.1%) have a buy rating on Morgan Stanley.. This is below the mean analyst rating of 10 competitors, which average 58.7% buy ratings. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

A Look Back: In the third quarter, profit rose 1578.6% to $2.2 billion ($1.15 a share) from $131 million (-7 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 34.8% to $11.5 billion from $8.53 billion.

Key Stats:

The increase in profit in the third quarter broke a streak of two consecutive quarters of year-over-year profit decreases. The figure dropped 39.1% in the second quarter and 45.5% in the first quarter.

The company’s revenue has risen for two straight quarters. In the second quarter, the figure rose 18.4%.

Competitors to Watch: Goldman Sachs Group, Inc. (NYSE:GS), Citigroup Inc. (NYSE:C), Bank of America Corp. (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM), Deutsche Bank AG (NYSE:DB), UBS AG (NYSE:UBS), Mitsubishi UFJ Financial Group Inc (NYSE:MTU), Piper Jaffray Companies (NYSE:PJC), Jefferies Group, Inc. (NYSE:JEF), and General Electric Company (NYSE:GE).

Stock Price Performance: During December 14, 2011 to January 13, 2012, the stock price had risen $1.57 (10.4%) from $15.06 to $16.63. The stock price saw one of its best stretches over the last year between January 6, 2012 and January 12, 2012 when shares rose for five-straight days, rising 8% (+$1.27) over that span. It saw one of its worst periods between December 9, 2011 and December 19, 2011 when shares fell for seven-straight days, falling 13.6% (-$2.22) over that span.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com