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Countdown to Morgan Stanley (MS) Q3 Earnings: A Look at Estimates Beyond Revenue and EPS

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Wall Street analysts expect Morgan Stanley (MS - Free Report) to post quarterly earnings of $1.57 per share in its upcoming report, which indicates a year-over-year increase of 13.8%. Revenues are expected to be $14.27 billion, up 7.5% from the year-ago quarter.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 1.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

In light of this perspective, let's dive into the average estimates of certain Morgan Stanley metrics that are commonly tracked and forecasted by Wall Street analysts.

Analysts' assessment points toward 'Revenues- Investment banking' reaching $1.37 billion. The estimate indicates a year-over-year change of +31.1%.

The combined assessment of analysts suggests that 'Net revenues- Institutional Securities' will likely reach $6.16 billion. The estimate points to a change of +8.6% from the year-ago quarter.

Analysts predict that the 'Revenues- Commissions and fees' will reach $1.16 billion. The estimate indicates a year-over-year change of +6.1%.

Analysts forecast 'Revenues- Asset management' to reach $5.52 billion. The estimate indicates a change of +9.7% from the prior-year quarter.

The consensus estimate for 'Book value per common share' stands at $56.99. The estimate is in contrast to the year-ago figure of $55.08.

The collective assessment of analysts points to an estimated 'Return on average common equity' of 10.8%. Compared to the present estimate, the company reported 10% in the same quarter last year.

The consensus among analysts is that 'Wealth Management - Total client assets' will reach $5,674.49 billion. Compared to the current estimate, the company reported $4,798 billion in the same quarter of the previous year.

It is projected by analysts that the 'Total assets under management' will reach $1,467.17 billion. The estimate compares to the year-ago value of $1,388 billion.

Based on the collective assessment of analysts, 'Assets under management - Liquidity and Overlay Services' should arrive at $474.19 billion. The estimate is in contrast to the year-ago figure of $481 billion.

According to the collective judgment of analysts, 'Assets under management - Fixed income' should come in at $170.53 billion. Compared to the present estimate, the company reported $163 billion in the same quarter last year.

The average prediction of analysts places 'Assets under management - Equity' at $292.55 billion. Compared to the present estimate, the company reported $272 billion in the same quarter last year.

Analysts expect 'Tier 1 Leverage Ratio' to come in at 6.8%. The estimate is in contrast to the year-ago figure of 6.7%.

View all Key Company Metrics for Morgan Stanley here>>>

Shares of Morgan Stanley have demonstrated returns of +12.4% over the past month compared to the Zacks S&P 500 composite's +4.9% change. With a Zacks Rank #4 (Sell), MS is expected to lag the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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