- Morgan Stanley‘s net revenue for the first quarter was $17.7 billion, surpassing the estimated $16.56 billion.
- Wealth management net revenue was reported at $7.3 billion, slightly below the estimate of $7.44 billion.
- Equities sales and trading revenue significantly outperformed expectations, reaching $4.13 billion compared to the $3.42 billion estimate.
- Advisory revenue came in at $563 million, which was lower than the projected $642.1 million.
- Equity underwriting revenue was $319 million, below the anticipated $357.8 million.
- The fixed income underwriting revenue outpaced estimates, totaling $677 million versus an expected $552.6 million.
- Earnings per share (EPS) were reported as $2.60.
- Wealth management pretax profit was $2.0 billion, not meeting the $2.09 billion estimate.
- The wealth management pretax margin was 26.6%, falling short of the estimated 28.2%.
- Book value per share was at $60.41, and the tangible book value per share was $46.08.
- Return on equity was reported at 20%, higher than the estimated 15.1%.
- Return on tangible equity was 37%, well above the predicted 20%.
- The standardized CET1 ratio was recorded at 15.3%, slightly below the estimate of 15.9%.
- The effective tax rate for the quarter was 21.2%, lower than the expected 23%.
- The expense efficiency ratio was 68%, better than the projected 70.2%.
- Analyst ratings include 7 buys, 18 holds, and no sells.
A look at Morgan Stanley Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts reviewing Morgan Stanley‘s long-term outlook on Smartkarma Smart Scores indicate a mixed bag for the financial giant. With a strong dividend score of 4 and moderate scores in value, growth, and momentum at 3, the outlook seems promising in those areas. However, the resilience score of 2 raises concerns about the company’s ability to weather unforeseen challenges. Overall, the scores suggest a company that offers good value with opportunities for growth and dividend returns, but investors may need to closely monitor its resilience to market fluctuations.
Morgan Stanley, a reputable bank holding company with a global presence, offers diversified financial services catering to a wide range of clients. Operating a robust securities and investment banking business, along with a global asset management arm, the company has established itself as a key player in the financial industry. Despite some concerns about resilience, Morgan Stanley‘s overall Smart Scores paint a picture of a company with solid fundamentals and potential for long-term growth and returns.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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