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Morgan Stanley (MS) Beats on Q4 Earnings & Revenue Estimates

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Have you been eager to see how Morgan Stanley (MS - Free Report) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this New York-based leading financial services holding company’s earnings release this morning:

An Earnings Beat

Morgan Stanley came out with earnings from continuing operations of 81 cents per share, which surpassed the Zacks Consensus Estimate of 65 cents.

Improved revenues were the main reason for earnings beat.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for Morgan Stanley depicted optimism prior to the earnings release. The Zacks Consensus Estimate has moved nearly 1% up over the last 30 days.

Further, Morgan Stanley has a decent earnings surprise history. Before posting the earnings beat in Q4, the company delivered positive surprises in all the prior four quarters, as shown in the chart below:

Morgan Stanley Price and EPS Surprise

 

Morgan Stanley Price and EPS Surprise | Morgan Stanley Quote

Revenue

Morgan Stanley posted net revenues of $9 billion, which compared favorably with the year-ago number of $7.7 billion. The Zacks Consensus Estimate was $8.5 billion.

Key Statistics:

 

  • Sales & Trading revenue were $2.3 billion
  • Fixed Income sales and trading net revenues were $1.5 billion
  • Repurchased $1 billion worth shares during the quarter


What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #1 (Strong Buy) for Morgan Stanley. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 Rank stocks here.)

How the Market Reacted So Far

Following the earnings release, Morgan Stanley shares were up nearly 2.5% in the pre-trading session. This is sync with what the stock witnessed in the last day’s session. Clearly, the initial reaction shows that the investors have considered the results in their favor. However, the full-session’s price movement may indicate a different picture.

Check back later for our full write up on this Morgan Stanley earnings report!

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