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Morgan Stanley (MS) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
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Morgan Stanley (MS - Free Report) reported $13.46 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 2.5%. EPS of $1.24 for the same period compares to $1.44 a year ago.
The reported revenue represents a surprise of +5.46% over the Zacks Consensus Estimate of $12.76 billion. With the consensus EPS estimate being $1.14, the EPS surprise was +8.77%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Morgan Stanley performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Book value per common share: $55.24 versus the five-analyst average estimate of $55.23.
Return on average common equity: 8.9% versus 9.88% estimated by four analysts on average.
Wealth Management - Total client assets: $4885 billion versus $4482.4 billion estimated by two analysts on average.
Total assets under management: $1412 billion versus $1351.5 billion estimated by two analysts on average.
Revenues- Investment banking: $1.16 billion versus the three-analyst average estimate of $1.06 billion. The reported number represents a year-over-year change of +0.4%.
Revenues- Commissions and fees: $1.09 billion versus the three-analyst average estimate of $1.15 billion. The reported number represents a year-over-year change of -10.7%.
Revenues- Institutional securities- Sales and Trading- Fixed income: $1.72 billion versus the three-analyst average estimate of $2.07 billion. The reported number represents a year-over-year change of -31.4%.
Revenues- Institutional securities- Sales and trading- Equity: $2.55 billion versus the three-analyst average estimate of $2.61 billion. The reported number represents a year-over-year change of -13.9%.
Revenues- Institutional securities- Investment banking: $1.08 billion versus the three-analyst average estimate of $1.10 billion. The reported number represents a year-over-year change of +0.3%.
Net revenues- Investment Management: $1.28 billion versus the three-analyst average estimate of $1.32 billion. The reported number represents a year-over-year change of -9.2%.
Net revenues- Wealth Management: $6.66 billion versus the three-analyst average estimate of $6.47 billion. The reported number represents a year-over-year change of +16.1%.
Net revenues- Institutional Securities: $5.65 billion compared to the $5.58 billion average estimate based on three analysts. The reported number represents a change of -7.6% year over year.
Shares of Morgan Stanley have returned -2% over the past month versus the Zacks S&P 500 composite's +2.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Morgan Stanley (MS) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
Morgan Stanley (MS - Free Report) reported $13.46 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 2.5%. EPS of $1.24 for the same period compares to $1.44 a year ago.
The reported revenue represents a surprise of +5.46% over the Zacks Consensus Estimate of $12.76 billion. With the consensus EPS estimate being $1.14, the EPS surprise was +8.77%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Morgan Stanley performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Book value per common share: $55.24 versus the five-analyst average estimate of $55.23.
- Return on average common equity: 8.9% versus 9.88% estimated by four analysts on average.
- Wealth Management - Total client assets: $4885 billion versus $4482.4 billion estimated by two analysts on average.
- Total assets under management: $1412 billion versus $1351.5 billion estimated by two analysts on average.
- Revenues- Investment banking: $1.16 billion versus the three-analyst average estimate of $1.06 billion. The reported number represents a year-over-year change of +0.4%.
- Revenues- Commissions and fees: $1.09 billion versus the three-analyst average estimate of $1.15 billion. The reported number represents a year-over-year change of -10.7%.
- Revenues- Institutional securities- Sales and Trading- Fixed income: $1.72 billion versus the three-analyst average estimate of $2.07 billion. The reported number represents a year-over-year change of -31.4%.
- Revenues- Institutional securities- Sales and trading- Equity: $2.55 billion versus the three-analyst average estimate of $2.61 billion. The reported number represents a year-over-year change of -13.9%.
- Revenues- Institutional securities- Investment banking: $1.08 billion versus the three-analyst average estimate of $1.10 billion. The reported number represents a year-over-year change of +0.3%.
- Net revenues- Investment Management: $1.28 billion versus the three-analyst average estimate of $1.32 billion. The reported number represents a year-over-year change of -9.2%.
- Net revenues- Wealth Management: $6.66 billion versus the three-analyst average estimate of $6.47 billion. The reported number represents a year-over-year change of +16.1%.
- Net revenues- Institutional Securities: $5.65 billion compared to the $5.58 billion average estimate based on three analysts. The reported number represents a change of -7.6% year over year.
View all Key Company Metrics for Morgan Stanley here>>>Shares of Morgan Stanley have returned -2% over the past month versus the Zacks S&P 500 composite's +2.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.