Categories Analysis, Finance, LATEST

Earnings Preview: Mixed bag for Morgan Stanley this Q3

Muted trading could really affect Morgan Stanley (MS) earnings that is scheduled to release Tuesday. With slowing trading activities, revenue might dip due to the slump in trading income.

Significant volatility and the bull market did help the financial giant in the first half of the year, but client activity has been low in the quarter due to the expectation of inflation, Fed policies, and the prospective trade war.

Morgan Stanley second quarter 2018 earnings

According to Thomson Reuters I/B/E/S, Morgan Stanley is expected to record a profit of $1.02 a share on $9.56 billion in third-quarter revenue. Last year same quarter, the financial company made a $0.93-a-share profit on $9.2 billion in revenue.

However, you can expect fixed-income trading revenues to slide at least 17.5% sequentially to $1.14 billion. Third quarter trading revenue might be in the vicinity of $2.9 billion, lower than the second quarter.

But all is not lost for Morgan Stanley as robust M&A deals might bolster its advisory fees and might hit closer to $0.6 billion. The rate hikes could also see a bump in interest income and overall loan demand.

On the other hand, the seasonal slowdown might affect underwriting fees, especially due to trade-war fears, The interest rate hikes by the Feds could also have led to lower issuances of debt which makes up much of the underwriting fee.

Compensations are set to play another important part in the earnings as Morgan Stanley reports tomorrow. Watch out for specific items that have been mentioned above and follow our details coverage this earnings season.

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard


Add Comment
Viewing Highlight