Morgan Stanley: Here’s What Investors Need to Know Before Earnings

Morgan Stanley (NYSE:MS) will report earnings before markets open on Thursday, July 18th. Morgan Stanley, a bank holding company, provides diversified financial services on a worldwide basis. The Company operates a global securities business which serves individual and institutional investors and investment banking clients. Morgan Stanley also operates a global asset management business.

Here is your Cheat Sheet to Morgan Stanley Earnings:

Earnings Expectations: Analysts expect earnings of $0.44 per share on revenues of $7.89 billion. Currently, the company’s P/E ratio stands at 48.95.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.52 to a profit $0.51. For the current year, the average estimate is a profit of $2.04, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Morgan Stanley has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 58,423 23,358 31,622 32,403 26,112
Diluted EPS ($) 1.45 -0.76 2.63 1.23 -0.06

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 6,953.00 5,289.00 8,535.00 8,158.00
Diluted EPS ($) 0.29 -0.55 0.25 0.49

Past Performance:
Morgan Stanley has beat analyst estimates 2 times in the past four quarters. This is not consistent enough to get bullish yet.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)