Morgan Stanley Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Morgan Stanley (NYSE:MS) will unveil its latest earnings on Thursday, October 18, 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 net income of 25 cents per share, a decline of 78.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 37 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 28 cents during the last month. For the year, analysts are projecting profit of 94 cents per share, a decline of 25.4% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the second quarter, the company reported net income of 16 cents per share versus a mean estimate of profit of 43 cents per share. In the first quarter, the company beat estimates by 25 cents.

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A Look Back: In the second quarter, profit fell 50.5% to $591 million (29 cents a share) from $1.19 billion (-38 cents a share) the year earlier, missing analyst expectations. Revenue fell 25.4% to $8.44 billion from $11.31 billion.

Wall St. Revenue Expectations: Analysts predict a decline of 34.1% in revenue from the year-earlier quarter to $6.52 billion.

Stock Price Performance: Between July 19, 2012 and October 12, 2012, the stock price rose $4.06 (30.6%), from $13.25 to $17.31. The stock price saw one of its best stretches over the last year between August 27, 2012 and September 7, 2012, when shares rose for nine straight days, increasing 17.5% (+$2.55) over that span. It saw one of its worst periods between September 14, 2012 and September 26, 2012 when shares fell for nine straight days, dropping 9.9% (-$1.81) over that span.

Key Stats:

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

The upcoming earnings announcement is a chance for the company to build on positive results from last quarter. The company reported losses in the fourth quarter of the last fiscal year and the first quarter, but finished in the black with income of $591 million in the second.

Analyst Ratings: With 11 analysts rating the stock a buy, two rating it a sell and seven rating the stock a hold, there are indications of a bullish stance by analysts.

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

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