Morgan Stanley on Wednesday mentioned its third-quarter revenue fell 10% amid weak point in its funding banking enterprise, however its buying and selling and asset-management income rose.
Morgan Stanley
MS,
mentioned revenue for the three months ended Sept. 30 fell to $2.26 billion, or $1.38 a share, from $2.49 billion, or $1.47 a share, within the year-ago interval.
Analysts tracked by FactSet count on Morgan Stanley to earn $1.28 a share.
At the beginning of the quarter, analysts had been anticipating earnings of $1.58 a share.
Revenue fell 1% to $13.27 billion, forward of the FactSet consensus estimate of $13.22 billion.
Morgan Stanley’s inventory fell 2.8% in premarket buying and selling on Wednesday.
Chief Executive James Gorman mentioned the market setting was blended.
“Our equity and fixed income businesses navigated markets well, and both wealth management and investment management producer higher revenues and profits year-over-year,” Gorman mentioned.
Morgan Stanley’s inventory fell 4.4% within the third quarter in a uneven interval for financial institution shares total. Prior to Wednesday’s trades, the inventory was down slightly below 10% prior to now month, in contrast with 1.9% drop by the S&P 500
SPX.
For the third quarter, buying and selling income rose 10% within the quarter to $3.68 billion.
Asset-management income elevated by 6% to $5.03 billion, whereas investment-banking income dropped 24% to $1.05 billion.
During the previous month, 11 analysts lower their revenue estimates for Morgan Stanley and just one elevated their view.
UBS analyst Brennan Hawken downgraded Morgan Stanley to impartial from purchase final week, slicing his value goal to $84 from $110.
“Despite its successful transformation into a wealth-management-focused firm with a solid, wire house peer leading growth profile, MS is confronted with obstacles such as deposit sorting/yield seeking, intense competition for talent, and a challenging revenue environment,” Hawken mentioned.
The common ranking amongst 26 analysts that cowl Morgan Stanley is obese.
The financial institution is within the midst of a management transition, with Chief Executive James Gorman planning to step down by subsequent May. Three potential successors on the financial institution embody Andy Saperstein, who heads up wealth administration; Ted Pick, who runs capital markets; and Dan Simkowitz, head of funding administration.
Also learn: Bank of America’s revenue climbs 10%, boosted by rates of interest and loans
Source web site: www.marketwatch.com
