Morgan Stanley 4Q profit, revenue hit by volatile markets

A sign is displayed on the Morgan Stanley building in New York

Morgan Stanley MS on Thursday reported profit and revenue below analysts' expectations as whipsawing markets late previous year took a toll on the bank's two biggest businesses. The financial services provider reported $0.73 earnings per share (EPS) for the quarter, missing the Thomson Reuters' consensus estimate of $0.89 by ($0.16).

USA stocks eked out gains on Thursday to consolidate near a one-month high, helped by advances in the healthcare and industrial sectors and as financials shrugged off Morgan Stanley's disappointing earnings. KCS Wealth Advisory's holdings in Morgan Stanley were worth $988,000 as of its most recent SEC filing. Institutional investors and hedge funds own 85.05% of the company's stock.

The S&P 500 financials index fell as much as 1 percent, before recovering to trade just 0.11 percent lower. Total assets under management were $463 billion at the end of the quarter, compared with $482 billion a year ago. Renaissance Technologies LLC lifted its position in Morgan Stanley by 28.2% during the 3rd quarter. Canada Pension Plan Investment Board now owns 1,633,304 shares of the financial services provider's stock valued at $76,063,000 after purchasing an additional 65,199 shares during the period.

"The news about Morgan Stanley is wearing off".

Declining issues outnumbered advancers for a 1.00-to-1 ratio on the NYSE. The company has a debt-to-equity ratio of 2.67, a current ratio of 0.80 and a quick ratio of 0.80.

Morgan's trading are in contrast to that of Goldman Sachs (GS.N) that showed a 2 percent growth in its trading business, led by a 17 percent rise in stocks trading, which dwarfed the losses at its bond trading business.

Morgan Stanley (NYSE:MS) last posted its earnings results on Thursday, January 17th. Analysts surveyed by Refinitiv had estimated adjusted earnings of 89 cents per share. The firm had revenue of $9.87 billion during the quarter, compared to analyst estimates of $9.55 billion. Morgan Stanley had a return on equity of 12.51% and a net margin of 15.93%.

Taiwan Semiconductor Manufacturing Co Ltd, the world's largest contract chipmaker, forecast its sharpest quarterly revenue fall in a decade, joining other technology and semiconductor companies to warn of a slowdown in global smartphone demand. During the same period in the prior year, the business earned $0.93 EPS.

The bank reported that net revenues for the current quarter fell to US$4.1 billion from US$4.4 billion a year earlier because of losses in the investments of some deferred compensation plans.

A number of brokerages recently issued reports on MS. James Investment Research Inc. lifted its position in Morgan Stanley by 13.7% during the third quarter. The Russell 2000 index of smaller-company stocks added 3 points, or 0.2 per cent, to 1,458.

Morgan Stanley share price is down to $42.25 after the unsatisfactory earnings report. Vining Sparks reissued a "buy" rating and issued a $60.00 target price on shares of Morgan Stanley in a report on Tuesday, October 16th.

What do Morgan Stanley Q4 results mean for their share price? The consensus analyst price target is $52.50.



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