Morgan Stanley 4Q profit, revenue hit by volatile markets

Morgan Stanley shares cratered after the bank published its quarterly earnings results

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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