Last quarter, revenues in investment banking grew 5% and
sales and trading rose 10%. While wealth management revenues saw little change,
revenues in investment management jumped 17% helped by higher levels of assets
under management and gains on carried interest.
The company’s stable business model is expected to drive growth in results. After seeing weakness in previous quarters, Morgan Stanley achieved revenue growth last quarter driven by strong performance across its business segments. The company’s efforts in reducing costs will also prove beneficial in the to-be-reported quarter.
Also read: Morgan Stanley Q3 2019 Earnings Conference Call Transcript
In the third
quarter of 2019, Morgan Stanley beat revenue and earnings estimates.
Revenue increased 2% to $10 billion while adjusted EPS increased 3% to $1.21.
Shares of Morgan Stanley have gained 25% over the past 12
months and 4% over the past one month. The stock has an average price target of
$57.29.
This week will see several banks report their earnings including JPMorgan (NYSE: JPM), Citigroup (NYSE: C), Wells Fargo (NYSE: WFC) and Goldman Sachs (NYSE: GS).